Life Insurance Policy

A life insurance policy is a legal contract between client and company that stipulates all terms, agreements and beneficiaries for a cost. For more specifics, please contact the company’s agent for specific details of policies.

Life Insurance Policy Riders

A rider added to a life insurance policy gives the client personalized options such as:
-Accelerated Death Benefit—this rider stipulates that a client with long-term care needs or terminal illnesses shall be able to collect the policy while living.
-Accidental Death Benefit—this option, also known as a double indemnity rider, pays extra monies to beneficiaries upon the accidental death of the client.
-Disability—a disability rider offers a pre-designated amount of monies if the client becomes disabled.
-Guarantee of Insurability—some policies allow a rider that promises to cover the client without further examination as long as payments are made on time.
-Level Term—a level term rider enables a client to purchase additional fixed term insurance.
-Premium Waiver—this waiver promises to pay for the life insurance premium should the client become disabled or unemployed.
-Dependent’s Insurance—this option allows the client to purchase spousal life insurance or child life insurance at a reduced rate.
-Withdrawal—the withdrawal option allows clients to remove accrued premium monies.
-Income Benefit—an income benefit will provide monthly monies to beneficiaries for a predetermined set of months.

Additional Life Insurance Policy Fine Print:

Check the life insurance policy for additional clauses and exclusions.
-Beneficiary—the client chooses this clause and indicates the life insurance beneficiary.
-Incontestable—the policy outlines a maximum amount of time the insurance policy may investigate the policy.
-Grace Period—this clause grants the client a month to submit a late payment.
-Spendthrift—a client-directed spendthrift clause forbids the company from paying creditors from the death benefit.
-Survivorship—this clause sets a time period before monies are distributed to a surviving beneficiary.
-Entire Contract—this clause sets forth rules that all the statements within the policy must be true.
-Misstatement of Age—this clause allows the company to terminate the policy if the client’s age on the policy proves untrue.
-Reinstatement—clients use this clause to reinstate the policy in the event payments are missed.
Use caution before signing as it is a binding contract. Some states grant buyer’s 10 days grace to cancel the policy and file for a refund.