Cash Values, Dividends, and Premium Loans
Chapters in this video
What this video covers
- How policy loans and contract adjustments affect the net cash value available
- How cash surrender, reduced paid-up insurance, and extended-term insurance affect coverage and future premiums
- How to calculate the reduced paid-up benefit from available value and the contract’s cost per coverage unit
- Which dividend choices may be available under a participating policy, and why dividends are not guaranteed
- How to calculate the premium still due using the actual declared dividend, including when the dividend exceeds the premium
- When an elected automatic premium loan can pay an overdue premium and help prevent a lapse
- Why an automatic premium loan creates debt and interest, while a waiver-of-premium rider excuses specified premiums after a qualifying event
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Life and Health course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.