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What Is The Deference In Face Value And Rider Value In Life Insurance? |
Question by Sevook | Posted in Insurance
What is face value ? What is rider amount?
I got a life insurance with 250K coverage. (Face Value) Somebody told me that if I have 150K for face value and 100 for rider my premium will be lower. Is this correct . Please help me it is confusing for me.
Answer: Face value, is how much gets paid out if you die.
A rider, is a change to the policy. For example, if you have a $150,000 death benefit, maybe you have a rider for $100K for "accidental death". That means, if you die BY AN ACCIDENT, like a piano falling on you, on the street, the policy pays out $250,000. If you die from anything else, like an infection in the hospital, after the piano falls on you, the policy only pays out $150,000. In that situation, it WOULD cost less than a $250K face value, because MOST of the time, it's going to pay out less.
Whoever that somebody is, did a lousy job explaining what a rider is, and WHY it would cost less . . |
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What Does Face Value Mean On A Life Insurance Policy? |
Question by betty w | Posted in Insurance
Answer: The previous answer is the most correct. The "face value" of a life insurance policy is the death benefit. However it's subject to other clauses in the policy.
Examples:
If the policy has a "double indemnity" clause, the beneficiary receives double the face value in case of accidental death.
Not all life insurance earns interest or dividends and some term policies have a "decreasing face value" clause or payout based on the aging of the insured each year. Many policies have a drastic cut in payout based on the insured reaching an "attained age clause". Don't confuse "current coverage or "current value" with "face |
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Is Cash Value The Same As Face Value On Life Insurance? |
Question by stacy | Posted in Insurance
Answer: NO. Face value is what gets paid out if you die - regardless of how long into the policy you are. It never changes.
Cash value, is kind of like your "cash back" rewards on your visa card - the longer you pay for the policy, the more it grows (a paltry amount, usually 5% of what you pay in). But if you die and collect the face value, then the cash value goes to the insurance company. If you cancel the policy, the cash value goes back to you. It's a sales tool, for selling policies to people who aren't good at math. |
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How Can You Have The Cash Value Of A Life Insurance Plan Be More Than The Death Benefit? |
Question by Naomi | Posted in Insurance
I am taking an insurance class and it doesn't matter to the answers but I would like to know. I can figure it out if you only have to pay until you reach the face value how can you have more cash value? Is it interest?
Answer: You can't. With a whole life-type policy, once your cash value equals your face amount, the policy "endows" and you get a check for that amount (basically).
With a universal life-type policy, after a certain point the face amount increases with the cash value - even if you choose to have a level face amount. This effect is called the "corridor of insurance". Without the corridor of insurance, the policy would stop being insurance once there was too much cash value. With it, the policy may remain in force indefinitely.
To get technical for a minute, that is how the face amount operates, not the death benefit. But since the death benefit is the |
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What Does It Mean When An Insurance Co. Say They Will Can Only Pay Out The Face Value Of The Policy? |
Question by Ramman | Posted in Insurance
Say you were in an accident, and you were the passenger. It was the driver's fault. You are suing their insurance company. They hit a car with 4 other people in another car. All are suing for damages. You were the worst of the bunch. Surgey, therapy, etc. The others mostly have whip lash, back pain, etc. (scam, probably). Now the insurance co. (nationwide) says they will only pay 100k (face value) to all parites involved. Told the drived to get a lawyer because my lawyers will come after him because
Answer: The insurance company will not pay more than the policy limit.
Bi Liability insurance is always stated as a fraction. Such as: 50/100 or 100/300.
The first number is the per person max. This is the max amount payable to any one person. It does not matter how badly you are hurt. It does not matter what your medical bills are. The per person max is the most you can get under this coverage.
So If the per person max is 50 - (50,000) that means the most any one person can get is 50,000.
If the max per person limit is 100K - that is the most they can pay any one person injured in the accident.
A lawyer can't change that. |
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Life Insurance After Retirement Age | Insurance
by admin
Many consumers had large term life insurance policies in their younger years. We were told by insurance advisors that we should not worry that these policies would expire after 10, 20, or 30 years because by that time we would outlive our need for a large policy. A large number of people had additional life insurance from a workplace group plan. The problem with that plan is that it did not work out for many of us. Many people had periods of unemployment or other financial issues. During the time that large mortgages were getting paid off, and children and spouses needed support it made sense to purchase term coverage. And those pesky kids did not always stick to our schedule either, and we may find ourselves facing retirement with people who still depend upon us for some financial support....
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What does Face Value mean?
A life insurance policy's face value is the total amount of the death benefit. ... The face value of a stock is the original cost of the stock shown on the stock certificate. ...
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