Problem:
Vanessa is dismayed to learn that she has stage-four cancer. Three weeks before this diagnosis, when she thought she was in good health, she purchased a 10-year term critical illness insurance policy. This policy covers cancer and provides for a $150,000 critical illness payout after a 30-day waiting period. The policy also has a return of premium rider on death and maturity. The oncologist's prognosis is devastating; Vanessa only has around 24 months to live.
What will the insurer do in this situation? Need Assignment Help?
Options:
- It will not pay any benefit, because Vanessa received her diagnosis before the end of the qualification period.
- It will pay the return of premium benefit to Vanessa's estate after she dies.
- It will pay the $150,000 critical illness benefit to Vanessa's estate after she dies.
- It will pay the $150,000 critical illness benefit to Vanessa at the end of the waiting period.