payor provision is frequently used in what type of life insurance policy?
100000
Juevenile policies and executive compensation related policies.
793842
Well, it doesn't exactly work that way.  The life policies commonly sold to babies, that you pay on for their whole life, are called Whole Life policies.  They are usually a BAD buy.  It usually pays out $2,000 towards funeral benefits, and when they turn 18, you can increase the policy to $25,000 or so (with an increase in cost) without having to prove insurability. \n\nIt was a good deal for my brother, a type 1 diabetic, because that was the only way he'd get coverage except through an employer.  For the most part, however, it's a rotten deal.\n\nFor less than that, maybe $100 a year (2/3 the price) you can buy a 20 year term life insurance policy that will pay $100,000 upon death, you can renew that for another 20 years for about $125 a year.    Just make sure the policy you get is renewable and convertible.
179046
It depends on the type of policy and the terms and conditions of the policy.  I assume this is a life insurance policy and it would depend on 1) the term of the policy...has it expired and 2) any equity that was built up over the years in the policy.\n\nCheck with the company that issued it
552798
To find out who gets the life insurance proceeds, you must look at your husband's policy. The beneficiaries are usually listed near the end of the policy.\n\nIf no beneficiary are listed, then death proceeds will be sent to his estate and from there on, the court will rule who gets what (unless your husband has written a Will).
315638
When a life insurance policy is owned by someone other than the insured, the must prove an "insurable interest" at the time the policy is applied for. Also, even the policies that are guaranteed issue (no medical underwriting) still require the signature of the insured. If your signature is forged that would be grouds for the insurance company to void the policy.
45277
Term insurance is temporary insurance.  Over long periods of time it is very expensive, over very short periods of time it is very cheap.  I will explain why in a minute.\n\nWhole life insurance is permanent insurance, it covers you for your whole life (hence the name).  It ranges from single payment whole life insurance, where you pay once and you are covered for life, to payments spread out over your entire lifetime.  It's premium can be level, but some start with a low initial premium that jumps after five to twenty years depending on the contract.  It is really declining term with the difference invested.\n\nFinally, there is universal life.  It is a hybrid of the two.  They give you an estimated premium amount, you can pay whatever you wish, subject to certain contractual minimum payments.  Like whole life, it has cash buildup so you are buying declining term and investing the difference, unlike whole life you can be at risk if your payments work out to be insuffficient.  The difference is the premium is flexable.\n\nTerm insurance over long periods of time (basically to advanced old age) will cost you about 6 times the amount you are insuring, whole life will cost you a fraction of the face amount and usually becomes self funding in 10 to 20 years depending on the contract.\n\nIn term insurance, you provide a small payment equal to your expected risk of dying plus insurance company costs minus expected earnings on the premium by the insurance company in terms of its investments.\n\nIn whole life, and to a lesser extent universal life, you provide a larger payment.  Over decades, the payment is split between cash value, company expenses, insurance costs and earnings by your policy credited to your account.\n\nTo illustrate, imagine you have a $100,000 policy and you buy term at a young age.  You send in premiums each year, and each year the premiums increase.  If you die, your beneficiaries get $100,000.\n\nThe counter example is a whole life policy.  You buy it at the same age.  Each year the premiums stay the same.  After ten years of paying, the cash value equals the amount of premiums you already paid in.  You break even.  To make the calculation simple, lets assume the premium is $1000 per year.  In year 10, if you die, your beneficiary is paid $100,000.  Of that $100,000, $90,000 was money that was money that the insurance company covered and $10,000 was money you had covered.  You shared the risk with the insurer so over time your premiums are lower.  Imagine another ten years go by and you call up your insurance agent about cancelling the policy.  You have been paying all these years and you would like to stop.  He checks on your policy and the earnings are sufficient that it will pay for itself.  You can keep the policy, never pay tax on the gain and have access to the cash value if you need it.  Your twin with the term is simply out of insurance.  If they invested the difference, they paid taxes on the gain every year.\n\nPermanent insurance (whole and universal) also come in two flavors, variable and traditional.  In variable, the cash value varies with the stock and bond markets and you have a small family of mutual funds to invest the cash value with.  In traditional, the company invests the money for you and credits you with your prorata share of the earnings.\n\nThere is one other flavoring, participating and non-participating.  In participating, usually sold by fraternals and mutuals, you own part of the insurance company, any profits you participate in.  In non-participating, you have no claim on the underlying company any profits are kept by them.
188706
Many whole life policies will have lapse protection options, one of which is reduced paid up. When premiums aren't paid and a whole life policy lapses with a reduced paid up option, the cash value of the policy is used to purchase as much paid up life insurance as the value will provide for. The amount of coverage will invariably be less than the original face amount of the policy (or "reduced") and no further premiums will be due ("paid up").\n\nAnother option alternative to reduced Paid Up is Extended Term. In this option, the cash value buys a term policy with an equal face amount to the original policy. However, the length of time the policy will be in force (the term) is determined by the amount of cash value in the policy.
842589
You may only take an insurance policy on someone you have an "insurable interset" in. You cannot take out a policy on a random person. This is to prevent a simple money laundering scheme.  In order for someone to have taken an insurance policy out on you they would have to have som type of financial loss caused by your death. The most common loss is by a family member or an employer of a critical employee such as the CEO.
72336
Many times the bank might want to see a buy/sell agreement in place that would be supported by life insurance.
189186
Most underwriters will want to see that your son is the one paying this policy.  It is typically a big red flag for a parent to be listed as payor on an adult child policy.
77113
Insurance agent or financial advisor doing a fee based business.
853039
There is a new federal law, but it relates to "janitor insurance" -- life insurance for which the employer was the main beneficiary.\n\nAs for health insurance: you can usually declare one policy "secondary" to another. But you have to take the initiative. I have done that with household cover because I have both homeowners and renters and the renters policy is better. I forced the agent to get a letter from the household company acknowledging that the policy was secondary.\n\nNo reduction in premium, but it avoide the problem of co-insurance, deductibles, absence of new-for-old and other stuff that the forced insurance didn't offer but the renters policy did.\n\nOn health, I have FEHBP (government employee/retiree insurance) so I have to watch out for the same sort of issue, but I haven't had to demand acknowledgment of secondary cover yet. My "other" cover is national health service (UK), and that doesn't count.
443490
If you have a joint account with your spouse, you are obligated to pay the remaining debt. So you would have to use the life insurance money to pay it. To answer your question, no one has access to the life insurance money except for the named beneficiary in the policy.
617464
Life insurance policies are contestable during the first 2 years for suicide and for insurance fraud.  After 2 years, the policy will pay the death claim.\n\nSuicide - during the first 2 years - company will contest claim.  Suicide after year 2, company has to pay the claim.\n\ninsurance fraud - during first 2 years, company can contest. after year 2, claim will be paid.\n\nthe other comments about plane crashes, sky diving, drug abuse are not true, unless fraud was committed to obtain policy in first place, AND you died in first 2 years.
539869
Yes. The policy is in effect until it expires, the probate judge discharges the insurer, or proof of death and supplemental insurance is obtained by the insurance company.
50854
Most likely this is an independent broker.  They usually sell insurance on behalf of many companies.  They don't necessarily get paid by you but rather by the insurer with a commission.
659394
In the U.S. a life insurance death benefit passes to the beneficiary without tax.  However, the value of the policy is included in the estate of the deceased and is taxed via probate process.