BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The loss of John’s income
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A reduction in the family’s standard of living
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Death-related expenses to be paid
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An increase in income and expenses
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Detailed explanation-1: -As mentioned, a payor benefit provision is designed to protect the child of the policyholder in the event the policyholder becomes disabled, dies, or is no longer able to pay for policy premiums.
Detailed explanation-2: -If the owner dies before the insured, the policy remains in force (because the life insured is still alive). If the policy had a contingent owner designation, the contingent owner becomes the new policy owner.
Detailed explanation-3: -A life insurance policy guarantees the insurer pays a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums paid by the policyholder during their lifetime.
Detailed explanation-4: -The most popular ways to cash out a death benefit is receiving it as either a lump-sum payment or as an annuity-a monthly or annual payment. Most beneficiaries choose the lump-sum payment and work with their financial planner or advisor to set up a financial plan. The death benefit is paid out in full.