When an accidental death benefit is added to a whole life policy how does this affect the policys cash value?
"Policy's cash value is not affected". When an accidental death benefit is added to a whole life policy, how does this affect the policy's cash value? After a policy has lapsed, which provision allows the insured to continue coverage? Bank loans".
What is the death benefit of a whole life policy?
A permanent estate: Whole life insurance provides a guaranteed death benefit for the entire life of the insured. As soon as the first premium is paid, the entire death benefit is set aside for your family.
What happens to a whole life policy when the insured dies?
Whole life insurance is paid out to a beneficiary or beneficiaries upon the insured's death, provided the policy was in force. Whole life insurance has a cash savings component, which the policy owner can draw or borrow from. The cash value of a whole life policy typically earns a fixed rate of interest.
What is an accidental death benefit?
Accidental Death Benefit (ADB) Accidental death benefit policies provide a payout if a death was caused by an accident. There are restrictions on both timing of the accident and death, as well as what is considered an accident.