上海交通大学金融学专业保险学原理讲义chapter08.pptVIP

Reinstatement Provision Reinstatement provision which describes the conditions that the policyowner must meet in order to reinstatememt a policy. In the United States, about one-half of the states require individual life insurance policies to include a reinstatement provision. Misstatement of Age or Sex Provision That describe the action the insurer will take to adjust the amount of the policy benefit in the event that age or sex of the insured is incorrectly stated. This provision in a life insurance policy states that if the age or sex of the insured is misstated and misstatement resulted in an incorrect premium amount for the amount of insurance purchased, then the insurer will adjust the face amount of the policy to the amount the premium actually paid would have purchased if the insured’s age or sex had been stated correctly. Nonforfeiture Benefits Nonforfeiture benefit are benefits available to the owner of a life insurance policy that builds a cash value. Most nonforfeiture benefit provisions give the policyowner the right to select from among several nonforfeiture options if a premium is unpaid when the grace period expires.these options include cash surrender benefits and continued insurance coverage benefits, which may be in the form of reduced paid-up insurance or extended term insurance. Nonforfeiture Benefits Cash surrender value nonforfeiture option nonforfeiture option states that a policyowner who discontinues premium payments can elect to surrender the policy and receive the policy’s cash surrender value. Nonforfeiture Benefits The amount of cash value actually available to a policyowner upon surrender of a policy may not be the exact cash value amount described in the policy. Paid up addition, dividend accumulations, advance premium payment, and policy loan will result in additions and subtraction from the cash surrender value. Continued insurance Coverage Nonforfeiture Options Rreduced paid-up insurance extended term insurance Continued insurance