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When would a 20-pay whole life policy endow quizlet


Under a 20-pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years; however, if the insured dies before all of the planned premiums are paid, the beneficiary will receive the face amount as a death benefit.

What is a 20 pay whole life policy?

20 Pay Life Insurance is a type of Limited Pay Life Insurance (typically Whole Life Insurance) that requires payments over 20 annual installments. 20 Pay Life Insurance can be used as an additional source of income for the family or to help cover monthly expenses in the event of your death.

At what point does a whole life policy endow?

Typically for whole life plans, the policy is designed to endow at maturity of the contract, which means the cash value equals the death benefit. If the insured lives to the Maturity Date, the policy will pay the cash value amount in a lump sum to the owner.

When would a 20 pay?

When is the face amount of a Whole Life policy paid? The face amount of a Whole Life policy will be paid when the insured dies or on maturity of the policy, whichever occurs first.