Explain the difference among the insured, the owner and the beneficiary of a life insurance policy. Give a specific example in which each party might be a different person.
The owner of the policy can also be the person insured. Sometimes, the owner might not be the person insured, in such a case, the ownership of the policy is given to a trust. In case the owner of the policy dies, then the proceeds of the claim is usually given to it's beneficiaries.
The insured is the person, for whom the policy is purchased.
The owner of the policy, is the person who owns the policy and has ownership claims over it.
The beneficiary is the person, who can claim the benefits of the policy.
For example, if a company purchased a health insurance for it;s employees,'
In this case the owner of the policy is the company, the person insured is the employee and the beneficiary of the policy can be the son/daughter/wife of the employee.
Explain the difference among the insured, the owner and the beneficiary of a life insurance policy....
Explain the difference among the insured, the owner and the beneficiary of a life insurance policy. Give a specific example in which each party might be a different person.
The beneficiary under key person life insurance normally is the: a. estate of the insured b. key person's spouse c. key person d. the employer 2. Assuming the insured does not die, the guaranteed cash surrender value of a 30 payment whole life policy will equal the face of the policy a. when the policy matures at age 100 or later. b. when premiums are no longer payable. c. 30 years after policy issue. d. never.
Carla is the owner and beneficiary of a $300,000 policy on the life of her father. Carla sells the policy to her sister, Paula, for $100,000. Paula later pays premiums of $45,000. Upon her father's death, how much of the insurance proceeds must Paula include in income? A. $0 B. $155,000 C. $45,000 D. $300,000 16) Mary is the beneficiary of a $500,000 insurance policy on her husband's life. She elects to receive $52,000 per year for 10 years rather...
Which of the following statements about life insurance policy loans is false?A) Loans are only permitted for specific reasons listed in the policy.B) Policy loans may be used to cover premiums using the automatic policy loan provision.C) The policyholder is required to pay interest on a life insurance policy loan.D) Any loan balance remaining at the time of the insured death is deducted from the life insurance proceeds paid to the beneficiary.
Mary Laslo named her son, Geoff, as the beneficiary on her life insurance policy, valued at $100,000. Mary and Geoff had an argument, and Mary changed the terms of her policy, making her sister the beneficiary instead. After Mary died, Geoff learned that the policy had been changed and demanded the money from the insurance company based on the fact that he was the original beneficiary of the policy. Geoff would not be successful because: O a. Geoff was never...
4. You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $150,000 today or receive payments of $1,627.89 a month for 10 years. You can earn 7.5 percent on your money. Which option should you take and why?
Susan is the beneficiary of a $50,000 insurance policy on the life of her mother, Kayla. To date, Kayla has paid premiums of $16,000 on the policy. Kayla elects to cancel the policy and receive $21,000, the cash surrender value of the policy. How much gross income must Kayla report as taxable income?
A man wishes to purchase a life insurance policy that will pay the beneficiary $15,000 in the event that the man's death occurs during the next year. Using life insurance tables, he determines that the probability that he will live another year is 0.97. What is the minimum amount that he can expect to pay for his premium? Hint: The minimum premium occurs when the insurance company's expected profit is zero.
If you are the beneficiary of a $500,000 life insurance policy, you can either receive the $500,000 in cash or you can take $27,400 per year spread over 30 years with the first payment today. which should you choose?
D) 20-paymen whole me 7) Which of the following statements about the ownership of a life insurance policy is (are) true? I. Under the ownership clause, the policyholder and beneficiary equally share all contractual rights in the policy while the insured is living II. The owner of the policy may assign certain rights, such as the right to designate the beneficiary, to another person. A) I only B) II only C) both I and II D) neither I nor II...