![]() Sp ec ia l pr ov is io ns ap pl y, including a suicide clause wherein the policy becomes null if the insured commits suicide within a specified time for the policy date (usually two years). The policy, like all insurance policies, is a legal contract specifying the te rm s an d co nd it io ns of th e ri sk as su me d. With an irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy assignment, or borrowing of cash value. ![]() The beneficiary is not a party to the policy, but is designated by the owner, who may change the ben efic iar y unle ss the pol icy has an irre voc abl e ben efic iary des ign atio n. The beneficiary is the person or persons who will receive the policy proceeds upon the death of the insured. Another important person involved is the beneficiary. ![]() The owner of the policy is called the grantee (he or she will be the person who will pay for the policy). But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he is the insured. For example, if John Smith buys a policy on his own life, he is both the owner and the insured. The re are th ree pa rt ies in a lif e in su ra nce tr an sac tio n the ins ure r, th e insured, and the owner of the policy (policyhold er), although the owner and the insured are often the same person.
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