Although a standard life insurance policy does not exist, certain provisions may be required by law....

Although a standard life insurance policy does not exist, certain provisions may be required by law. In addition, some optional provisions or modifications may need to be added to the basic policy. Which of the optional provisions do you think should be considered essential by the insurance buyer?

Solutions

Expert Solution

Some necessary provisions are:

1.Misstatement of age: if the age was misstated when applying for the insurance, there should be a provision to change it and the computed premiums.

2. Premium payments periodicity: mostly premiums are paid yearly, but there should be a provision to pay premium on shorter intervals of time, e.g. half yearly, monthly etc.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

How a project may be affected if User Involvement does not exist for a certain project...

How a project may be affected if User Involvement does not exist for a certain project and techniques that a project manager may employ to help ensure that they are in place.

How a project may be affected if Executive Management Support does not exist for a certain...

How a project may be affected if Executive Management Support does not exist for a certain project and techniques that a project manager may employ to help ensure that they are in place.

How a project may be affected if Realistic Expectations does not exist for a certain project...

How a project may be affected if Realistic Expectations does not exist for a certain project and techniques that a project manager may employ to help ensure that they are in place.

Concerning the settlement options in a whole life insurance policy, is the policyowner required to select...

Concerning the settlement options in a whole life insurance policy, is the policyowner required to select a settlement option when applying for insurance?

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $220 comma 000 on your 80 th birthday. You must buy the policy on your 65 th birthday. The insurance company can earn 7.5% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? What is the minimum purchase price the insurance company should charge for this policy?...

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $300,000 on your 85th birthday. You must buy the policy on your 62nd birthday. The insurance company can earn 8.5% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy?

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $250,000 on your 85th birthday. You must buy the policy on your 65th birthday. The insurance company can earn 7% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy?

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $280 comma 000 on your 85 th birthday. You must buy the policy on your 60 th birthday. The insurance company can earn 9% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy?

Present value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement...

Present value. Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $240,000 on your 80th birthday. You must buy the policy on your 62nd birthday. The insurance company can earn 5.5% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? What is the minimum purchase price the insurance company should charge for this policy?

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg....

Standard Insurance is developing a long-life insurance policy for people who outlive their retirement nest egg. The policy will pay out $220,000 on your 80th birthday. You must buy the policy on your 65 th birthday. The insurance company can earn 7.5% on the purchase price of your policy. What is the minimum purchase price the insurance company should charge for this policy? What is the minimum purchase price the insurance company should charge for this policy?

Subjects