Today’s Lecture - #17 Sample Whole Life Insurance Policy Beneficiaries Payment of Policy Proceeds Life Insurance Riders

Section 8 - Beneficiaries (Page 745) Succession in Interest of Beneficiaries Direct Beneficiaries Contingent Beneficiaries Further Payees Owner or his Estate

Life Insurance – Example 1 John Doe names his wife Jane as a direct beneficiary and his children Jack and Jill as contingent beneficiaries. If John dies while all his beneficiaries are still alive, how are the policy proceeds split? A)Jane gets it all B)They split equally C)Jane gets 50%, Jack and Jill each get 25% D)Jack and Jill each get 50% E)None of the above

Beneficiary Provisions Revocable or Irrevocable Uniform Simultaneous Death Act Applies when order of death is unknown Common disaster provision Requires beneficiary to survive the insured by a specified time Is not included in this policy

Life Insurance – Example 2 John Doe names his wife Jane as a direct beneficiary and there are no contingent beneficiaries or further payees listed in the policy. John and Jane are involved in car accident that kills them both. John is dead when the paramedics arrive. Jane dies on the way to the hospital. The policy proceeds are paid to: A)John’s estate B)Jane’s estate C)The insurance company keeps the proceeds D)John’s parents E)None of the above

Section 9 - Payment of Policy Proceeds (Page 746) Payment of Proceeds Death Proceeds Surrender Proceeds Payment Plans Interest Income Installment Income Specified Period Specified Amount

Section 9 - Payment of Policy Proceeds (Page 746) Life Income Plans Single Life Income Chosen periods Joint and Survivor Life Income

Life Insurance – Example 3 John Doe dies on October 30, Jane has an adjusted age of 70 then. What is the minimum monthly benefit she will receive if she elects to receive payments for twenty years and then for the rest of her life? A0 B$501 C$504 D$523 ENone of the above

Life Insurance – Example 4 John Doe dies on July 12, Jane, with an adjusted age of 80, elects to receive joint and survivor life income benefits with her son, who has an adjusted age of 55. What is the minimum monthly benefit they will receive? A0 B$379 C$405 D$435 ENone of the above

Life Insurance Riders Note - These riders are not included with John Doe’s policy. Waiver of Premium Disability Income Accidental Death Benefit (Double Indemnity) Guaranteed Insurability Option Accelerated Death Benefits Catastrophic Illness Terminal Illness