#5.ThePolicyReinstatement
Clause
•Optionforrestoringalapsedpolicywithin3to
5yearsoftheexpiration
•Generallyrequiresallpastduepremiums,
loans,andinterestbepaidbefore
reinstatement
Docsity.com
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Policy Reinstatement - Asset Managment - Lecture Slides, Slides of Management Fundamentals
Asset Management is an important subject in Economics. In these Lecture Slides, following concepts are discussed : Policy Reinstatement, Restoring, Lapsed Policy, Expiration, Interest, Reinstatement, Paid, Holder to Change, Type of Policy, Benefits
Typology: Slides
2012/2013
1 / 9
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download Policy Reinstatement - Asset Managment - Lecture Slides and more Slides Management Fundamentals in PDF only on Docsity!
The
Policy
Reinstatement
Clause
Option for restoring a lapsed policy within
to 5 years of the expiration
Generally requires all past due premiums, loans, and interest be paid before reinstatement
The
Change
of
Policy
Clause
Allows the policy holder to change the type of policy in effect
The
Payment
Premium
Clause
Explains the options available for the payment of the premiums, such as monthly or annually.
The
Incontestability
Clause
Declares that the insurance company can not dispute the validity of the policy after a certain time period has passed, normally
years.
This clause provides very important protection to the beneficiary against policy cancellation.
Settlement
Options
(cont’d)
Installment ‐ payments settlement ‐‐ periodic payments, normally for a fixed period, of both the principal and interest. - Life annuity settlement ‐‐ periodic payments of both the principal and interest that continue for the life of the beneficiary. - Note: Life insurance death benefits are income tax ‐ free; however, in some cases state inheritance taxes may apply.
Types
of
Life
Annuity
Settlements
Straight life
largest monthly payout
Straight life with period certain annuity - Straight life with refund annuity - Joint life and survivorship annuity