4.0 Life Policy Provisions and Options
Learning Objectives
Upon completing this chapter, you should be able to:
- Explain the function and purpose of standard policy provisions
- Identify and describe common policy exclusions
- Distinguish among the various types of beneficiaries
- Illustrate different beneficiary designation methods
- Describe available life insurance settlement options
- Explain the available nonforfeiture options
- Identify and describe dividend options available under participating policies
Overview
The purpose of this chapter is to familiarize the student with the understanding that, while life insurance policies vary in structure and design, they contain a number of standardized provisions and contractual options. This chapter will examine the common interpretation of these provisions and options, and explain how they function to benefit the policyowner, insured, and beneficiary, while also safeguarding the interests of the insurer.