The 'beneficiaries' of an life insurance policy are those who: reimburse the sum assured. pay the...

The 'beneficiaries' of an life insurance policy are those who:

reimburse the sum assured.

pay the premiums.

buy the policy.

issue the policy.

are protected by the policy.

Solutions

Expert Solution

The main beneficiaries of a life insurance policy are those who are "Are protected by the policy".

The people reimbursing the sum are the one fitting the bill, same with the people paying the premiums and an insurance can be bought for others too, how is that going to benefit me. The issuer doesn't benefit from the policy but the people who are protected by the policy are the one who benefits the most.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

An insurance company will pay the face value of a term life insurance policy if the...

An insurance company will pay the face value of a term life insurance policy if the insured person dies during the term of the policy. For how much should an insurance company sell a 10-year term policy with a face value of $40,000 to a 30-year-old man for the company to make a profit? The probability of a 30-year-old man living to age 40 is 0.97. Explain your answer. Remember that the customer pays for the insurance before the policy...

Walter owns a whole-life insurance policy worth $52,000 that directs the insurance company to pay the...

Walter owns a whole-life insurance policy worth $52,000 that directs the insurance company to pay the beneficiary $260,000 on Walter’s death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). What value of the policy, if any, will be included in Walter’s gross estate upon his death?

Ashley owns a whole-life insurance policy worth $25,000 that directs the insurance company to pay the...

Ashley owns a whole-life insurance policy worth $25,000 that directs the insurance company to pay the beneficiary $500,000 on her death. Ashley pays the annual policy premiums and has the power to designate the beneficiary of the policy. What value of the policy, if any, would be included in Ashley's estate upon her death?

Robert Weed is considering purchasing life insurance. He must pay a $180 premium for a $100,000 life insurance policy.

Robert Weed is considering purchasing life insurance. He must pay a $180 premium for a $100,000 life insurance policy. If he dies this year, his beneficiary will receive $100,000. If he does not die this year, the insurance company pays nothing and Robert must consider paying another premium next year. Based on actuarial tables, there is a 0.001 probability that Robert will die this year. If Robert wishes to maximize his EMV, he would not buy the policy if the...

Why do we need life insurance? Who needs life insurance? Describe the different policy types and...

Why do we need life insurance? Who needs life insurance? Describe the different policy types and the advantages and disadvantages of each?

The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay...

The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $18,500 per year forever. If the required return on this investment is 5.9 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g., 32.16.) Present value $ Suppose the Perpetual Life Insurance Co. told you the policy costs $460,000. At what interest rate would this be a fair deal? (Enter your answer as...

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will...

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $28618 per year forever. If the required return on this investment is 7 percent, how much will you pay for the policy?

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will...

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. Suppose a sales associate told you the policy costs $475,000. At what interest rate would this be a fair deal? (Round your answer to 2 decimal places. (e.g., 32.16))

A life insurance co. is trying to sell you an investment policy that will pay you...

A life insurance co. is trying to sell you an investment policy that will pay you and your heirs $15367 per year forever. If the policy costs $546357 today, at what interest rate (in percent) is it properly priced? Answer to two decimals.

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will...

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $ 25,000 per year forever. If the required return on this investment is 8 percent, how much will you pay for the policy?

Subjects