3. What i s Life insurance provides for the payment of a specified benefits to designated beneficiary upon death of the insured person
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5. H ow The insured (the customer) selects the coverage he or she wants and pays a premium for this insurance. The more coverage the customer selects, the higher the premium. Upon the death of the insured, the beneficiaries are given the amount of the policy (minus loan amounts, if any). Works
8. I mputed i ncome Imputed income is the monetarv value the Internal Revenue Service (IRS) attaches to emplovee/retiree term life insurance plan amounts in excess of $50,000. Emplovees mav notice an increase in the amount of taxes withheld from their pav check due to this issue.
9. Employees can name one or more primary beneficiaries for every plan in which he or she participates. Employees can also name one or more contingent or secondary beneficiaries who will receive plan benefits if all primary beneficiaries die before the employee. If an employee dies and does not have a beneficiary on file, or if the employee's primary and contingent beneficiaries have died before the employee, the benefit will be paid according to the plan rules. Plan rules typically pay out benefits to survivors in the following order: (1) spouse, (2) children, (3) parents, (4) siblings, and (5) estate of the insured.
13. Term Life Insurance is the least expensive life insurance because it has no cash value and because coverage decreases as the insured gets elder. This feature is what keeps the premiums low.
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15. The Child Life Insurance Plan pays benefits to the employee only, as the beneficiary, if his/her child dies while covered by the plan. The plan covers all eligible children. Each child receives the same coverage, regardless of how many children are in the employee's family. Children must meet eligibility requirements.
16. Accidental Death & Dismemberment (AD&D) provides financial protection against death or loss of hand, foot, sight, etc., (varies by client) as the result of an accident. If an employee is physically impaired by an accident, a benefit is paid to him, her based on the AD&D policy's schedule of benefits.
17. Business Travel Accident Insurance (814) provides extra protection if an employee dies or is severely injured in an accident while traveling on company business. These benefits are paid in addition to amounts paid from the life insurance and AD&D plans.
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Editor's Notes
The insured (the customer) selects the coverage he or she wants and pays a premium for this insurance. The more coverage the customer selects, the higher the premium. Upon the death of the insured, the beneficiaries are given the amount of the policy (minus loan amounts, if any). In the case of a covered
Evidence of Insurability (EOI), also known as proof of good health, is the documentation of an employee's historical health events that is used by insurance companies to determine vvhether a person meets the definition of good health. It may include family health history, current occupation, and other lifestyle questions. EOI prevents sudden sharp increases in insurance coverage by individuals vvho know they have a potential life-threatening condition and are looking to receive financial benefit for their beneficiary.
Imputed income is the monetary value the Internal Revenue Service (IRS) attaches to employee/retiree term life insurance plan amounts in excess of $50,000. Employees mav notice an increase in the amount of taxes withheld from their pav check due to this issue.
Employees can name one or more primary beneficiaries for eyery plan in which he or she participates. Employees can also name one or more contingent or secondary beneficiaries who will receive plan benefits if all primary beneficiaries die before the employee. If an employee dies and does not haye a beneficiary on file, or if the employee's primary and contingent beneficiaries haye died before the employee, the benefit will be paid according to the plan rules. Plan rules typically pay out benefits to suryiyors in the following order: (1) spouse, (2) children, (3) parents, (4) siblings, and (5) estate of the insured.
Term Life Insurance is the least expensive life insurance because it has no cash value and because coverage decreases as the insured gets elder. This feature is what keeps the premiums low. Term life provides the highest level of coverage at a vounger age for when an emplovee of customer likely has more expenses - car pavments, school loans, children, higher mortgage, etc. In additio, someone at a vounger age would have a need for more insurance to provide for minor children pay As the insured gets older, that person should haye less outstanding expenses (typically someone who is 65 does not haye dependent children, school loans, may not haye a car payment or a mortgage). Therefore the insured has less need for a large amount of life insurance.
