Hinerman Group

Website Links

Description

A Accelerated Death Benefit Option A rider offered by some companies that allows for the early payment of a portion of the policy‘s face amount should the insured suffer from a terminal illness or injury. Typically, the insured would be diagnosed with one year or less to live. This is a free option. The portion is usually 25 % of the face amount with a cap at $250,000 Accidental Death Benefit Rider An extra death benefit amount paid out in addition to the face amount of the policy if the insured dies as the result of an accident. There is an extra charge for this benefit. and it cannot exceed the face amount of the policy. Age Most insurance companies calculate age by using “age nearest.” Example: Insured is 45 and it is January, and the insured's birthday is in March. The insurance company calculates age nearest to be age 46 for the purpose of calculating rates. Assignment The transfer of the ownership rights of a life insurance policy from one person to another. The insured must request the transfer. Aviation Hazard The extra hazard of death or injury resulting from participation in aeronautics. It does not usually include fare-paying passengers in licensed aircraft. An extra premium may be required for aviation coverage. Aviation Exclusion This excludes from coverage certain deaths due to aviation. B Backdating The practice of making the effective date of a policy earlier than the present Some states may limit backdating to six months. Backdating is often used to make the age at issue lower than it actually was in order to get lower premium. Beneficiary The person to whom the proceeds of a life insurance policy are payable upon the death of the insured.. Business Insurance Policies written for business purposes, such as key employee, buy-sell, business loan protection, etc. Buy-Sell Agreement An agreement among owners in a business which states that a deceased owner’s interest in a business will be sold at a predetermined price. The remaining owners are legally obligated to buy at a price fixed in the Buy-Sell agreement. May also include an owner’s disability. The funding vehicles are either disability or life insurance policies or a combination of both. C Children's Term Insurance Rider Provides term insurance to the insured's dependents. It is a flat premium for all his dependents; the benefit usually is not less than $1,000 or more than $10,000. May also be called dependent child rider. Collateral Assignment Assignment of all or part of a life insurance policy as security for a loan. If the insured dies the creditor is only entitled to the balance of the loan. Conditional Binding Receipt This is the more exact terminology for what is often called a binding receipt. It provides that if premium accompanies an application, the coverage will be in force from the date of application, or medical examination, if any, whichever is later, provided the insurer would have issued the coverage on the basis of the facts revealed on the application, medical examination and other usual sources of underwriting information. This coverage usually has a limit until the policy is delivered and all delivery requirements are met.

Products & services

Similar companies nearby