Business Administration - Financial Planning RFC124 Chapter Notes - Chapter 8: Life Insurance, Term Life Insurance, Unit
17 Nov 2016
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Employer or member, - referred to as plan member. Must be at work the day the coverage begins. Employer union or sponsor covers 50% towards cost of the group benefits; member pays the rest. Or (cid:373)ultiple of pla(cid:374) (cid:373)e(cid:373)(cid:271)er"s a(cid:374)(cid:374)ual ear(cid:374)i(cid:374)gs (1-3x) Coverage as long as employed, up to age 65: may cease, or drop to flat amount or half of pre 65 coverage, usually ends at 71. By naming a beneficiary other than the estate, the proceeds pass directly from the insurance carrier to the beneficiary and do not get probate taxed. Up to ,000 in lost coverage upon termination to an individual life insurance policy without evidence of insurability: must occur within 31 days of termination of the group plan. Death benefit is paid tax free to beneficiary. Designed to preserve savings and investments: to perform adl (activities of daily life) Purchase a specific benefit amount that is paid regardless of actual expenses.
