we're going to talk about some of the standard policy provisions adopted by the national association of insurance commissioners now this is going to be a series of videos here but i'm going to give them to you a few at a time so that you don't have to like watch an hour-long video just to learn them all so uh the first one that we're going to go over is the entire contract so the the entire contract in an insurance policy includes the policy itself a copy of the application and any writers and amendments or endorsements okay so it's the actual policy that says hey like this is this is what you have and then the application that was submitted to the carrier so that's included in the final policy as well okay and then also any writers so a writer is something that's added to a policy so say you get like a whole life policy and then some whole life policies have the option to add a term to it almost like a little bonus an accessory right you can add that some have riders where they'll help cover like nursing homes if you go to a nursing home you can take some of the death benefit to help cover that they'll advance it to you ahead of time so a rider is like a an attachment to a policy in an amendment or an endorsement it could be a change that's needed or some sort of authorization that's needed on the policy after it's applied for for instance say you apply for like uh one rate and then you get rated down to another rate then you have to have an amendment or an endorsement to make that change and authorize that change on that policy so that's all included uh in in this as a part of the standard policy provisions per se there's no like nationally adopted like rule like you have to have all these but this is just the standard that's followed these are a few of the things now don't forget to subscribe to my channel and turn on post notifications i also have another channel for selling life insurance over the phone specifically the name of my channel is well my name justin valmeigen i hire agents nationwide to sell life insurance 100 over the phone from the comfort of their own homes we provide all the leads full training advancement opportunities in a generous compensation plan so if you'd like to learn more just email me at jve djbe.com the next one is the insuring clause so the insurance clause says that like it gives a basic agreement before the between the insurance company and the person who is buying the insurance the the insured okay and it just says that the insurance company will pay the claim if the insured dies as long as they've made their premium payment so some things that are included this is usually on the face of the politic on the cover on the first front face page of the policy when it comes in the mail or when it's delivered we mail ours because we sell all our insurance over the phone here at senior life services oh by the way my agency we sell 100 over the phone from home life insurance so after you get in if you'd like to learn after you get in the business if you'd like to learn how to sell insurance from home without having to drive around and go to appointments face to face then just reach out to me and also my company provides leads to all of our clients i mean our agents at no cost so we provide the pipeline of clients so you don't have to like hit up your family and friends or buy leads or all that stuff but anyways the insuring clause it says the premium how much the insured has to pay the death benefit it has the duration of the policy and like what type of policy it is if it's a whole life or a term policy or anything like that and then it also says the parties of the contract so maybe the beneficiaries the insured the owner if it's different from the insured the insurance carrier now we also have a free look period so a free look period is a time it's like a it's exactly what it is a free look period so it gives the insured a free look at their policy it's like a refund period right it's like a refund policy essentially so it's like you buy a shirt and you get you know 15 days to return it with the receipt for your cash back and and after that you're stuck with it so with the insurance policy in the state of florida it's a 14-day law so they have 14 days to look at it once they receive the policy not when it's issued okay so the insurance company may issue the policy then it takes a few days to get the to the insured and the insured gets it at that point in the state of florida they have 14 days to review it now every state's different some go to two 10 days some all the way up to 30 days insurance companies have their own policy with this stuff too like a lot of the carriers that we sell here they have up to 30 days of a free look period so even though the state that i live in has a 14 day free look period where the insurer has 14 days to make any changes to the policy or request a full refund of their first payment if they made it with the application some our carriers that we sell give them 30 days so that's usually on the uh right in the beginning of the policy as well it states that so what we just covered here is the entire contract which once again includes the uh the application the policy itself and any writers and amendments and endorsements okay and none of those things can be changed once the policy is in effect without both parties agreeing to the change so the none of the things in the entire contract can be changed once it's solidified and set in stone okay and then we had the insuring clause which is just like the basic agreement between the insurance company and the insured saying hey if you die we're going to pay the claim and this is what your premium is the death benefit this is who's involved in the policy and stuff like that and then we have the free look period which is essentially the refund period for the life insurance policy so if you found this content valuable please like and comment on it subscribe to my channel turn on post notifications and also share this with your friends who may be studying for the license course as well and look if you decide that you want to take a look at what we have to offer for insurance sales too then reach out and i'll be more than happy to go over our program with you i hope i help you pass your life insurance licensing exam course with this content thank you all right we're going to talk about three more policy provisions in this video we're going to talk about consideration we're going to talk about ownership rights and the owner's rights of the policy the owner of the policies rights and we're going to talk about assignments so consideration in the policy provisions is really like what is each side putting up so what are they offering okay now the insured the person whose life is being insured they are offering in the consideration a promise that they will pay the premium every month or every year or whatever the premium payment mode is how frequently they pay it and also that everything they said in the application is truthful and that everything was done it was was true and correct to the best of their knowledge and belief okay so those are the two things in the consideration for the insured and for the insurer the insurance carrier in the consideration it's their promise to pay the claim if the insured dies okay now next we move on to ownership rights and owners rights now there's really four parties in the purchase of an inch of a life insurance policy so there are the there's the owner by the way like the video subscribe to my channel and turn on post notifications if you find these videos valuable to you in helping you pass your insurance pre-licensing course so you have a free look period now i mean i'm saying so owner's rights so there's there's four parties in a policy uh in involved in the life insurance policy so there's the insurer which is the insurance company there's the policy owner there's the insured and there's the beneficiary now a lot of times the insured and the policy owner are the same two people also sometimes there's a payor so sometimes there's someone separate who pays the policy but for your licensing exam all you're really going to know is that there's an insurance company there's the person who's insured there's the person who owns the policy and then there's a beneficiary the person who gets the money when the insured dies okay so the only one who can really make changes to the policy is the policy owner so the policy owner has exclusive rights to that policy meaning they can change the beneficiary they can receive living benefits like the terminal illness benefit in the policy where the money can be advanced to the owner if the insured is terminally ill they have access to cash value they can select the benefit payout option meaning that they want it to be lump sum or they want it to be paid in overtime where the the beneficiary gets payment installments they a lot of times they pay the policy premiums and the policy owner has to have insurable interest in the person who the insurance is on when that person applies for insurance so what insurable interest means i have another video on this but it really just means that if the insured and you can search for my channel it really just means that the person who's taking out the insurance on the on the insured has to have some vested interest in that person dying like they're gonna sustain a loss that that person dies so obviously if the person getting the insurance is the owner and the insured right if the insured and the owner of the same person like i'm taking out insurance on myself then obviously i have insurable interest on myself so what that means is like i can't just go get life insurance on jeff bezos because he's rich i can't just do that i could get life insurance on jeff bezos if i was on the board of amazon because if he dies then i want to make sure that he can be replaced his cash his human life value can be replaced but you can't just go like get life insurance on anybody so they pay they pay the policy premiums and uh if they're if the insured is if the insured is not the policy owner if someone else owned the policy that's called third party ownership so a lot of times that happens like if a parent gets a policy on a child the parent owned the policy the child is the insured it's third party ownership because someone other the insured is owning the policy now there is assignment of rights so an assignment of ownership so the owner of the insurance policy can transfer ownership assignment they can transfer assignment of ownership to someone else now they can do this completely and that's that's a complete full transfer that's an absolute assignment okay and it has to be done in writing so this doesn't say i own a policy on my son if i had a child i own the policy on my son i could transfer the ownership to his mother and it would not change the fact that he is insured it just changes the owner of the policy so at that point i would no longer have access to the cash value i couldn't change the beneficiary she could okay so you can transfer ownership in an absolute way when you transfer all rights of the policy now there's an assignment provision of a policy that explains all this stuff and you can also do collateral assignments so collateral assignment involves partial transfer of rights so this can usually be done to secure a loan or a transaction so for example say i have a million dollar life insurance policy out on myself okay i have a million dollar policy out of myself and i want to transfer ownership partial ownership to the bank so that they can know that they're going to be the beneficiary of that money if they die if if i die then you can i can do that to secure a loan right so say i get a big life insurance policy and i want to get a loan out i mean a lot of banks will require this if you take very very large loans for you to get a life insurance policy that way if you die they can have the money to satisfy what's remaining in the loan so then once the that's only it's only partial assignment a collateral assignment it's only a partial transfer of rights remember it's called collateral assignment because the insurance policy is at like collateral for the loan in the event of your death once the debt or loan is repaid the assigned rates are returned to the policy owner so it's like a it's like a policy you can transfer partial you can partially transfer rights to someone under contingency that once that debt or loan is paid then the rights come back we're going to go over beneficiaries and how beneficiaries pertain to you passing your life insurance pre-licensing exam course if you find value in this video and it helps you out please like and subscribe to my channel and check out my other videos on passing your life insurance exam course so beneficiary the beneficiary is the person who receives the money when the insured dies so when you have someone who has insurance on them and they die then the beneficiary receives the proceeds of that life insurance policy now there are two main types of beneficiaries there's primary and there's contingent the primary is the first person in line to receive the death benefit when the insured passes the contingent is the next person in line if both if the primary insured dies before no sorry if the primary beneficiary dies before the insured dies then the contingent receives the money i'll give you an example say betty is married to john and they have a son named matt betty can name john the primary beneficiary in matt as the contingent beneficiary so if john dies before betty then matt is the new primary beneficiary as the contingent if they're both alive john and matt and john's the primary and betty dies john receives the money if john dies before betty dies then matt receives the money there's also a tertiary beneficiary that you can name in case they can be a third level there can be multiple primary beneficiaries multiple contingent beneficiaries and the insured can decide what percentage of the death benefit they want each primary beneficiary beneficiary to receive or each contingent beneficiary if there's more than one so for instance say betty wants to make john and matt both primary beneficiaries she can put matt at 75 percent of the death benefit and she could put john at the other 25 so there's also two types of beneficiaries when it comes to revocable and irrevocable beneficiaries so a revocable beneficiary is one that can be changed without consent of the beneficiary so in that case the policy owner can change who is the the benefici the beneficiary without having to ask for permission so they can just go in and change it whenever they want they can change the beneficiaries whenever they want if it's an irrevocable beneficiary then the policy owner has to get permission from the beneficiary written permission before they can make a change to the beneficiary or before they can take it any cash value from that policy or before they can assign ownership or different assign that policy to someone else so that irrevocable beneficiary does have power in that case now there are rules set up to protect people if in the event that both the insured and the primary beneficiary die at the same time or in the same event what's that called that's called a common disaster and there's actually actually a simultaneous sorry simultaneous death law that's a mouthful simultaneous death law what that means is that if both the insured and the primary beneficiary die at the same time or from the same event then the contingent is the person who would be the beneficiary not the estate of the primary beneficiary so you can see that would come up let's look at the example from before we have betty and john john is a primary beneficiary matt's a contingent manufacturing if betty and john die at the same time then matt now becomes a beneficiary not john's estate okay now in some insurance policies there's a clause for this and it's called the common disaster clause and this is meant to protect a contingent beneficiary now they can die separate times too so like for instance say betty and john are both in a earthquake and betty dies and then john dies a few days later since they died in close proximity from the same event then matt is still the one who receives that benefit so it wouldn't go to john's estate right you guys can see how that would arise that you can see okay well would it go to the state of the primary beneficiary or would it go to the contingent beneficiary so in that case uh these rules protect the contingent beneficiary so that's really what you have to know about beneficiaries when it comes down to your policies specifications and policy provisions don't forget to subscribe to my channel and turn on post notifications i also have another channel for selling life insurance over the phone specifically the ch name of my channel is well my name justin valmeigen i hire agents nationwide to sell life insurance 100 over the phone from the comfort of their own homes we provide all the leads full training advancement opportunities and a generous compensation plan hey everybody we're going to talk about three things related to passing your life insurance license exam course the first thing we're going to talk about is premium payments then we're going to talk about reinstatement and then we're going to talk about incontestability so the first thing i'm going to cover is premium payments now premium payments have to do with paying for your life insurance policy now there are different modes of paying the premium so when you hear modal premium it means how is that payment being paid all this really means is are you paying it monthly are you paying it annually are you paying it semi-annually like every six months are you paying it quarterly every three months so premium mode which is just the frequency how often are you paying that premium and if you pay it anything more frequently than annually you usually have to pay a little bit extra because what happens is there's administrative costs and there's actual transaction costs that are involved that the insurance company wants you to pay for now in addition to that there is a grace period which is usually like anywhere from 30 to 60 days where after the payment is due there's a period of time that the insured has the ability that it's like a grace period to where they can make that premium payment before the policy lapses okay so say like the payment's due and they don't on the first of the month in the 15th of the month comes and they die and they haven't paid that premium yet well the policy doesn't lapse the day that the premium is missed usually there's like a 30 to 60 day grace period where the client has that time to pay the premium and obviously if they die in the grace period then what happens is that premium is just taken out of the death benefit then there's also level and flexible premiums so a level premium is a premium that never changes it's level throughout the life of the policy hey stop it and then there's so i got my little dogs here and then there's a flexible premium which the client can increase the premium or decrease the premium at will so they can decide whether they want to put in more or less you may see these on the universal life policies by the way guys i have an agency we sell life insurance 100 over the phone we provide all the leads to our agents so there's no cold calling no talking to your friends family relatives we focus on sales more than recruiting we're not going to make you recruit everybody that you talk to you can make sales from the comfort of your own home right through your computer we provide you the full pipeline all your leads no driving around it's really a state of the art system i make a bunch of money with this headset right here and if you guys are interested in learning the program that we have to offer to take advantage of your life insurance license with then just reach out to me at jve at thejve.com my email is jve thejve.com so next we're going to talk about reinstatement so if a policy lapses then you can reinstate the policy what this means is like the policy's lapse and you want to put it back in force so in order to reinstate a policy you have to pay back your premiums plus interest usually and you have to usually pay off any loans that are outstanding against the cash value or against the death loans against cash value if there's any outstanding loans and then you also have to provide evidence of insurability so you have to show that you're not like screwed up you're not messed up to the point where you're not going to be insurable okay so that's uh in in there so that you do have that ability in the life insurance plan to reinstate it if it does lapse and people can do it but you can't do it if like your health has changed or anything like that so you have to show that you're still insurable and you have to pay back any premiums that you miss so say it ha some companies allow up to three years of reinstatement but you have to pay back premiums for three years and show that nothing has changed in your health you may have to go through underwriting again and then the last thing i'm going to talk about is incontestability so incontestability has to do with essentially the death benefit paying out so anything after two years if the if any insurer dies after two years then if there are any lies or material material misrepresentations in the application say the insured withheld something or lied about something or didn't even realize that there was something going on with them and there was if they die after two years of the policy being enforced they have to pay the death benefit anyway now exceptions to that are things related to age gender or identity so if someone says lies about their birthday and the insurance company doesn't pick up on it and they're actually older or younger when they die then the death benefit will usually adjust as such if they were older than they say they were the death benefit payout is going to be less right because they were paying a premium that they should have been paying more and if they were younger than they said they were then they'd actually probably get more death benefit because they are old they were saying they were older than they actually were so they were overpaying on the insurance and then if some people it go through gender changes um i respect anybody whatever anybody wants to do with their body but insurance companies they don't really care so they look at gender at birth so if a man decides he's a woman then uh when she dies the insurance company says you're a male at birth and genetically so that's how the life insurance company pays out so there would be an adjustment of death benefit there and then also if you lied about who you were right like if you said you were this person and you're really not and you die then they may actually not even pay the climate claim out at all so um however there's another caveat to this if the insured dies in the first two years of having that policy then there is a contestability period it's called contestability period where the insurance carrier can actually challenge the claim and can contest it and they can say well you know based on our underwriting that person wasn't supposed to die this fast so we're gonna go do another check on all their health and everything else all their records to make sure that they weren't lying about anything and then we're gonna make sure that we can actually insure them if you look up right here you're going to see a video that explains all the different types of life insurance policies that you can get so and that you're going to need to know for your life insurance exam course a policy loan is only available in policies that contain cash value so you can take out a loan from the insurance carrier in an amount up to the up to maximum of whatever the cash value equals now since it's a loan it's not taxed as income okay that's why a lot of people will like life insurance policies as the like life insurance policies as tax safety nets or tax havens because you can take out the money and there is no tax on it since it's a loan however there is interest to that loan that you can use to pay that loan over time so when the insured dies any outstanding balance on the policy loan comes out of the death benefit in a policy loan can only make a policy lapse if the loan is greater than the amount of cash value that the policy has so let me go over that again here say the death benefit is a million dollars and they have a loan against the cash value for a hundred thousand dollars that means when they die that hundred thousand dollars comes out of the death benefit okay and any outstanding interest and say that the cash value in the policy is two hundred thousand dollars and because they're not making payments back on the loan the interest brought that hundred thousand dollar cash value loan up above two hundred thousand then the policy can lapse now loan requests can be deferred but they usually aren't now what that means is the insurance company can defer the request for the loan i think for like up to six months or something like that now there's another type of loan called an automatic premium loan now an automatic premium loan is never put through a it's like the loan is never put off what this is it allows the insured stop a safety so that they won't lapse their policy if there's enough cash value in there to pay for a premium so say they missed their premium and the grace period expires instead of the policy lapsing if there's enough money in the cash value to cover whatever their premium is then that cash value will cover that premium so some people actually use this as a way once their cash value gets big enough there's enough interest accumulating on that money to pay for the premium itself okay so say like that that million dollar example i had before say they have a million dollar policy and it's a thousand bucks a month and say they have two hundred thousand dollars in cash value and they're earning enough interest to um you know pay a big chunk of their premium or maybe pay the whole thing so maybe they're they haven't earned enough interest to pay the whole thing at that point now they can just use that interest to pay off their premium or take some of the cash value to pay their premium instead of having to pay pay out of their pocket so that's just an option that some people have but companies have this in place to help prevent the lapsing of a policy so here we covered policy loans the basics of it in a policy provision and now there is an interest rate a minimum interest rate that is that is charged to the loan so it depends every company varies on what their interest rate is i'm not going to say what rates would be because that may date this video but there is a policy there is an interest rate and that is in the policy usually it says what the interest rate will be if they borrow against it and if someone needs to find out they can always just call the company and figure it out but there is an interest rate on any money that's borrowed as cash value so as you're paying back the money that's borrowed from the cash value you also have to pay interest on the loan now there are some exclusions in life insurance policies that you'll need to know about to pass your life insurance exam course if you find value in this video subscribe to my channel and turn on post notifications my whole channel is designed to help you pass your life insurance licensing exam so there's some risks that the company won't cover for instance aviation is one right these are exclusions so they say hey if you are on an airplane that's piloted by someone who's not a professional airliner pilot like a you know commercial airline pilot and you die we may not cover that death benefit if you have a hazardous job like if you train skydiving or you like to skydive frequently or you're a mountain climber or you like to swim with sharks or something like that like they may not cover the death benefit if you die in that type of situation or you'll have to pay a higher premium if you have a risky job now there are also war or military exclusions what these usually is sometimes insurance companies will exclude deaths of active duty military or if someone dies in an act of war but that's not common anymore usually they're included or they may not insure anybody someone at all like the insurance company can make that distinction if they're going to insure someone who's in the military or who's going to war then also suicide so there's a clause to protect against the company against suicide so someone if someone buys a policy and they commit suicide within the first two years of that policy being enforced the death benefit will not pay out if two years pass and then they commit suicide then the death benefit will pay out so i covered some things there that are exclusions and in things that life insurance companies put in their policy provisions that they won't cover not all these are included in every policy but these are just some examples so there are some that are standard which is like usually aviation and hazardous jobs and then sometimes there's things about war or military in there and then suicide there is a suicide clause in there as well so i hope you this helped you guys please if you find value in this subscribe to my channel and check out my other channel which you can find the link to in the description where i teach you how to sell life insurance over the phone without ever having to drive around door-to-door