About This Chapter
Policy Riders, Provisions, Options & Exclusions - Chapter Summary
Riders, provisions, options and exclusions are all major aspects of insurance policies. Use this chapter to strengthen your knowledge of life insurance policies and their components. Review the definitions, types and examples of various provisions, payments, benefits and riders. Once you've completed this chapter, you will be able to do the following:
- Define a life insurance policy rider, and identify types of insurance policy riders
- List and discuss life insurance policy provisions and clauses
- Discuss ownership rights and options of life insurance policies
- Identify types of life insurance policy beneficiaries
- Explain modes, types and provisions of premium payments
- Share the basics of cash value life insurance
- Describe life insurance dividends, non-forfeiture options, assignments and settlement options
- Provide details about accelerated death benefits, and life insurance policy exclusions and limits
Lessons in this chapter are accessible 24/7 and can easily be reviewed anywhere you can access the Internet. Navigate them in any order you desire, and revisit them as many times as needed. Test your knowledge of the lessons you review by taking multiple-choice quizzes. Send your questions to our experts to acquire additional information about policy riders, provisions, options and exclusions.
1. What is a Rider on a Life Insurance Policy?
When you purchase a life insurance policy, you can also purchase additional options called riders, which allow you to customize your life insurance policy to suit your needs. Read this lesson to learn about some of the riders available to you.
2. Insurance Policy Riders: Types & Examples
This lesson will introduce the concept of insurance policy riders for policyholders as well as provide definitions for related terms, including waiver of premiums and monthly deductions, payor benefit, term riders, and long-term care.
3. Important Life Insurance Policy Provisions
In this lesson, we'll define life insurance, the insured, insurer and beneficiary. You'll also learn about various provisions that protect the company, policyholder and recipient of the death benefit.
4. Life Insurance Policy Clauses & Provisions
There are many provisions and clauses in a life insurance policy that explain what is and is not covered under that policy. This lesson describes these provisions and clauses and explains why they exist.
5. Life Insurance Policies: Ownership Rights & Options
Owning a life insurance policy provides a policyholder with certain rights to control the policy. In this lesson, you will learn more about ownership rights for life insurance.
6. Beneficiaries of Life Insurance Policies
In this lesson, we will address the different types of beneficiaries including primary, contingent, revocable, irrevocable, and minor beneficiaries. The lesson will also include benefits and eligibility requirements for each, along with a definition of the common disaster clause.
7. Premium Payments: Modes, Types & Provisions
Policyowners have the flexibility to choose the type of life insurance policy that suits their needs, as well as select the frequency of premium payments. In this lesson, you will learn about premium payment modes, types of insurance, and policy provisions.
8. Cash Value Life Insurance
Case value life insurance pays out a death benefit like term life insurance but also accumulates cash value. In this lesson you'll learn how the insured can take out loans on the policy amount or cash it in if they decide they need the money or no longer need the policy.
9. Life Insurance Assignments: Definition & Parties
In this lesson, we will review how life insurance contract ownership rights can be transferred through an assignment and identify the different parties involved.
10. Life Insurance Settlement Options
Life insurance settlement options are varied and can get confusing for insureds, especially since the payout is during such a stressful time. The following is a list and explanation of those options.
11. Accelerated Death Benefit: Definition & Provisions
The lesson will discuss the importance and purpose of the accelerated death benefit for insurance as well as discussing the two primary provisions for the accelerated death benefit and how to sign up.
12. Life Insurance Policy Exclusions & Limits
Life Insurance policies can be challenging if you don't know the standard exclusions and limitations. These unique aspects of life insurance policies should be known before really delving into purchasing and working with these kinds of policies.
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Other chapters within the Life & Health Insurance Exam Prep & Practice course
- Types of Life Insurance Policies
- Taxes, Retirement & Other Insurance Concepts
- Disability Insurance Policies
- Health Insurance Policies & the Government
- Provisions of Health Insurance Policies
- Social Insurance Programs
- Health Insurance Rights & Benefits
- Insurance Applications & Underwriting
- Contract Law in Insurance