Policy Riders, Provisions, Options, and Exclusions
An owner names 'my children, per stirpes.' One child dies before the insured but leaves two children. What result is the designation intended to produce?
Answer and explanation
Answer: B. A per-stirpes class designation distributes by family branch. Descendants of a deceased child take the share that their parent would have received, subject to the precise designation and applicable law.Source: National Association of Insurance Commissioners — Life Insurance — Tips for naming beneficiaries > Children > per stirpes and per capita
More policy riders, provisions, options, and exclusions questions
- A policy insures Jordan's life, but Casey is the policyowner. Who generally controls beneficiary designations and permitted policy changes?
- A policy names one primary beneficiary and one contingent beneficiary. The primary beneficiary dies before the insured, but the contingent beneficiary survives the insured. Who receives the proceeds under the usual designation?
- A policyowner compares a cash-value withdrawal with a policy loan. Which distinction is generally accurate?
- A policyowner exercises a long-term care rider on a life policy and receives benefits. What is the effect on the policy's death benefit?
- A policyowner wants a lender to receive enough death proceeds to satisfy a loan balance. Which policy action may accomplish this?
- A policyowner wants disability protection on a flexible-premium universal life policy. Which rider most directly addresses the policy's recurring mortality charge?
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