Final answer:
In an adjustable life policy, further underwriting is only required when there is a change of insured. Changing the beneficiary, transferring ownership, or borrowing against the policy's cash value does not require additional underwriting. The insurance company must assess the new insured's risk, potentially affecting premiums or policy terms.
Step-by-step explanation:
In an adjustable life policy, no further underwriting is generally necessary when you are changing the beneficiary, transferring ownership, or borrowing against the equity. However, no underwriting is not required when you are changing the insured on the policy. When there is a change of insured, the insurance company will need to assess the risk of the new insured, which could involve a medical examination as well as a review of medical records and lifestyle. This process could potentially result in changes to the premiums or terms of the policy based on the new insured's health and life expectancy.
Furthermore, it's important to understand that cash-value life insurance policies like adjustable life policies offer both a death benefit and a cash-value account. The cash value accumulates over time and policyholders can use it as an account for borrowing funds.Final answer:
In an adjustable life policy, further underwriting is only required when there is a change of insured. Changing the beneficiary, transferring ownership, or borrowing against the policy's cash value does not require additional underwriting. The insurance company must assess the new insured's risk, potentially affecting premiums or policy terms.
Step-by-step explanation:
In an adjustable life policy, no further underwriting is generally necessary when you are changing the beneficiary, transferring ownership, or borrowing against the equity. However, no underwriting is not required when you are changing the insured on the policy. When there is a change of insured, the insurance company will need to assess the risk of the new insured, which could involve a medical examination as well as a review of medical records and lifestyle. This process could potentially result in changes to the premiums or terms of the policy based on the new insured's health and life expectancy.
Furthermore, it's important to understand that cash-value life insurance policies like adjustable life policies offer both a death benefit and a cash-value account. The cash value accumulates over time and policyholders can use it as an account for borrowing funds.