MTHEL131 Lecture Notes - Lecture 5: Manulife, Reinsurance, Munich Re
13 Jun 2017
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You are only eligible for a non-forfeiture option if you have a csv (aka only with whole life insurance: automatic premium loan, reduced paid up. No longer need to pay, since it"s already paid-up: extended term insurance. Csv is gone, but csv is used to continue coverage. Riders: you can add onto a policy to provide additional benefit. They all end when base policy expires or is terminated: waiver of premium (wp) If the policy holder becomes disabled for over 6 months, insurer would pay the premium until the policy holder gets better and goes back to work or dies: payor (parent) waiver. Works the same way as wp, but used in a third-party situation: level term rider. Term rider is attached to the base policy: spousal term rider, child term rider. Price is the same regardless with the amount of children there are. Would cover the child until age of 18 or 21 (depends on insurer)
