Explanation. The mode of the premium payment is the frequency of the payment. Modes are usually monthly, quarterly, semi-annually, and annually.". "Winnie is insured under a life insurance policy. She designates "all natural children of the insured" as beneficiaries in her life insurance policy.
One of the notable features of the spendthrift clause is that the life insurance proceeds are exempt from the claims of the deceased insured's creditors as long as there is a named beneficiary other than the insured's estate. ". "Alexandria assigns her $10,000 life insurance policy to a bank as collateral for a loan.
"A beneficiary receives the proceeds from a life insurance policy in a lump-sum payment. Which of the following statements best explains how the proceeds will be treated in relation to the debts of the beneficiary?#N#A) It is protected from the beneficiary's creditors once it is paid to a beneficiary.#N#B) It can be subject to the beneficiary's debts and creditors.#N#C) It is protected from the beneficiary's creditors as long as it is paid in a lump sum.#N#D) It is not subject to the beneficiary's debts and creditors."
"A beneficiary receives the proceeds from a life insurance policy in a lump-sum payment. Which of the following statements best explains how the proceeds will be treated in relation to the debts of the beneficiary ?
An insuring clause or agreement in life insurance contains the insurer's promise to pay the death benefit to a named beneficiary. An authorized officer of the company must sign the clause, not an agent or producer.". "Roland purchases a life insurance policy and names his spouse, Carol, as a beneficiary.
The spendthrift clause is designed to protect the proceeds of a life insurance policy from the beneficiary's spending habits and creditors. When this clause is included in the policy, the creditors cannot attach the death benefit proceeds before they are made to the beneficiary.
D) It is not subject to the beneficiary's debts and creditors.". "It can be subject to the beneficiary's debts and creditors. When proceeds of a life insurance policy are payable to a beneficiary but held in trust by the insurer, the beneficiary has an exclusive right to the proceeds.