Life insurance is an important component of any sound financial plan. It can provide financial protection for your family-or-your business in terms of your premature death. At John Hancock, we offer a comprehensive portfolio of life insurance products have been designed to be very competitive and provide real value. Are you looking for a guaranteed death benefit protection, low-cost coverage or consistently strong cash value accumulation potential.
There
is a difference between the insured and the owner of the policy,
although the owner and the insured are often the same person. For example, if Joe bought a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on the life of Joe, he is the owner and he is insured. Policy owner is the guarantor and he'll be the one to pay for the policy. The insured is a participant in the contract, but not necessarily party to it. Also, most companies allow owners to different payers and, e. g. grandfather to pay a premium for a policy on children, which is owned by a grandson.
Recipients receive the policy after the death of the insured. Owners appoint a receiver, but the recipient is not a party to the policy. Owners can change the beneficiary unless the policy has the recipient name can not be canceled. If the policy has a receiver can not be canceled, any change in beneficiary, policy assignment, or borrow the cash value will require the approval of the original recipient.
In cases where the policy owner is not insured (also referred to as celui qui vit or CQV), insurance companies have sought to limit policy purchases to those who have insurable interest in CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest. Insurable interest requirement usually indicates that the purchaser will actually suffer such a loss if CQV dead. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no requirement of insurable interest, the risk that the buyer will kill CQV for insurance claims would be great. In at least one case, an insurance company that sold the policy to the buyer without insurable interest (who later killed CQV for results), found liable in court for contributing to the death of the victim (Liberty National Life v. Weldon,. 267 Ala.171 ( 1957))
Recipients receive the policy after the death of the insured. Owners appoint a receiver, but the recipient is not a party to the policy. Owners can change the beneficiary unless the policy has the recipient name can not be canceled. If the policy has a receiver can not be canceled, any change in beneficiary, policy assignment, or borrow the cash value will require the approval of the original recipient.
In cases where the policy owner is not insured (also referred to as celui qui vit or CQV), insurance companies have sought to limit policy purchases to those who have insurable interest in CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest. Insurable interest requirement usually indicates that the purchaser will actually suffer such a loss if CQV dead. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no requirement of insurable interest, the risk that the buyer will kill CQV for insurance claims would be great. In at least one case, an insurance company that sold the policy to the buyer without insurable interest (who later killed CQV for results), found liable in court for contributing to the death of the victim (Liberty National Life v. Weldon,. 267 Ala.171 ( 1957))
