pt 3

- Pays an additional sum to the beneficiary if the insured dies due to a covered accident.

- Amount paid is multiple of the policy face amount

-Cheapest way to add a lot of coverage for a limited period of time

Allows the insured to receive a portion of the death benefit before the death if the insured has a terminal illness and is expected to die in 1-2 years.

Can help pay for expenses such as nursing home by decreasing the amount of life insurance policy's death benefit.

a life insurance policy loan balance exceeds the cash value

(Nonforfeiture option) Permits the policy owner to use the policys' cash value to buy level, extended term insurance for a specific period.

owner is permitted a certain amount of days once the policy is delivered to look over it and decide to return it for a refund of all premiums paid

allowing purchase of permanent life insurance without submitting proof of insurability. allowed every three years, up to the original face amount.

insurance company may not challenge the validity of the policy once the policy has been in force for a period time, usually two years.

• Cash surrender - allows policy owner to receive the policys cash value 
• - Extended term option 
• - Paid up option
• -Loan value

allows policy owner to receive the policys cash value. Policy owner will no longer have coverage.

allows policy owners to exchange the dividend for an addition single payment whole life policy

they pay the total amount of premiums paid into the policy in addition to face value.

• - elimination of a hazard
• - example : not doing a business deal after deciding it is too risky

• - business becoming incorporated 
• - sharing an uncertain risk with another similar group

insurers obligations o pay a claim depends on whether the insured or beneficiary has complied with all policy condones