MTHEL131 Chapter Notes -Disability Insurance, Coronary Circulation, Terminal Illness
16 Oct 2013
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During disability, premiums for the term policy will be waived, but if converted, the new premiums are not waived. If converted at the end of the conversion period, then premiums are waived for new policies as well. Disability income: monthly benefit upon insured"s disability, usual waiting periods are 4-6 months before payment commences, premiums on both base policy and disability income rider, dividends are paid, no affect to death benefit. Provisions or riders that provides payment of all or a portion of a life insurance"s policy amount prior to the insured"s death in the event of some specified, adverse medical condition. Provides that double or multiple of policy"s face amount is payable if the insured dies of an accident. Low premiums as a result of low probability. Definition of accidental death: bodily injury effected solely through external, violent, and accidental means, with death occuring within 90 day of injury, cause and result of the death must be accidental.
