Options
Policyowners have decisions to make about how the cash value in the policy should be protected, how the return of excess premium (dividends) should be invested, and how benefit payments will be made. The different choices available to them are categorized as
1. Nonforfeiture Options—how the cash value in the policy should be protected
2. Dividend Options — how the return of excess premium (dividends) should be invested
3. Settlement Options — how benefit payments will be made
1. Nonforfeiture Options
Because permanent life insurance/cash values, certain guarantees are built known as nonforfeiture values are required by state law.
A. cash surrender value, lost contract
B. reduced paid-up insurance, long
C.Extended term...same face but shorter term—automatical if not selected
2. Dividend Options
Dividends are a return of excess premiums, not taxable , cannot guarantee dividends.
A.Cash Payment
B. Reduction of Premium
C. Accumulation at Interest-/the dividends themselves are not taxable, the interest on the dividends is taxable
D. Paid-up Additions—purchase a single premium policy in addition to the face amount of the permanent policy
E.Paid-up Insurance - uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early.
E. One-year Term
The insurance company uses the dividend to purchase additional insurance in the form of one-year term insurance that increases the overall policy death benefit.
G. Accelration of endowment
3. Settlement Options
G. Accelration of endowment
3. Settlement Options
A.Cash Payment-automatic-face amt is not taxable
B. Life Income
C. Interest Only
E. Fixed Period
F. Fixed Amount
Joint and Survivor
The life income joint and survivor option guarantees an income for two or more recipients for as long as they live. Most contracts provide that the surviving recipient will receive a reduced payment after the first recipient dies.
Most commonly, the reduced option is written as “joint and ½ survivor” or "joint and 2/3 survivor,” in which the surviving beneficiary receives ½ or 2/3 of what was received when both beneficiaries were alive. This option is commonly selected by the policyowner who wants to protect two beneficiaries, such as elderly parents. Unless a period certain option is also chosen, as with the life income option, there is no guarantee that all the life insurance proceeds will be paid out if all beneficiaries die shortly after the installments begin. This option guarantees, however, an income for the lives of all beneficiaries.Joint and 2/3 to survivor with period certain (10, 15 or 20 years) – Pays an income while both annuitants are living. When one dies, 2/3 of the income payment continues during the survivor's life- time.
联合和幸存者
生活收入联合和幸存者选择保证两个或更多收件人的收入，只要他们居住。大多数合同规定，幸存的收件人将在第一个收件人去世后收到减少的付款。
最常见的是，减少的选项被写为“联合和½幸存者”或“联合和2/3幸存者”，其中幸存的受益人收到两个受益人还活着时收到的½或2/3。这个选项通常是由政策所有者选择，希望保护两位受益人，例如年迈的父母。除非选择某一期权，否则与生活收入选项一样，如果所有受益人死亡，则无法保证所有人寿保险收益都将被支付分期付款开始后不久，这一选择保证了所有受益人的生命收入。