Home       The Firm       FAQ       Library       Contact Us    
  Life Insurance
Purpose: Estate Creation and Estate Preservation
Policy Types: Single Life, Joint & First To Die, and Joint & Last To Die
Plan Classification:

Temporary:  10 Year Term; 20 Year Term; & Term to Age 75

Permanent: Term 100; Whole Life; Limit Pay; & U.L. (Universal Life)

Adjustable or Guaranteed:

An Adjustable plan means that the policy’s premiums can increase based on the Insurance Company’s experiences involving claims, investment results, tax changes and numerous other factors.

Guaranteed plans cannot have their premiums increased no matter what happens regarding the Insurance Company’s experiences. As long the policy owner pays premiums, and doesn’t lapse the policy, the premiums cannot be increased.

Participating or Non-participating:

A participating policy shares in the Insurance Company’s profits, usually in the form of a “policy dividend”. A “policy dividend” is not a typical dividend.  A policy dividend is a partial refund of over payment a year in arrears at the sole discretion of the Insurance Company.

Non-participating do not share in the Insurance Company’s profits.

Renewable & Convertible:

All plans whether permanent or temporary, permit the policy owner to automatically renew the policy each year; however, the term “renewable” more appropriately refers to a plan that is initially taken for a specific temporary period of time, such as a 10 Year Term, and then is permitted to renew for another specific period, usually the same as the original one at an increased premium without any medical evidence being required.

Convertibility is a feature that permits a temporary policy to be converted, without medical evidence, to any permanent plan offered or permitted by the Insurance Company.

Premium Modes:

Life Insurance products are customarily priced to be paid annually in advance. Paying an annual premium is the cheapest method; however, most carriers offer several alternative payment modes with the most popular being Semi-Annual and Monthly Automatic Bank withdrawal. Any payment mode, other than annual, contains a modal loading factor which is A.P. (Annual Premium) x .54 for semi-annual and A.P. x 0.09 for the pre-authorized monthly withdrawal.

Preferred Risk Premium Rates: Since about 1980, carriers have offered discounted rate for Nonsmokers. Currently, Insurance Companies offer a number of Life Insurance Risk classes based upon a number of factors. The factors commonly used to classify an insured’s risk are: Tobacco use; Family medical history; Personal medical history; Alcohol and Drug use; Blood Pressure; Cholesterol ratios; Build (height & Weight); Driving record; Aviation practices; Dangerous sports or hobbies; and Travel destinations. These classes of risk are more common amongst temporary plans than permanent ones, at this time.
Features of Some Permanent Plans:

Cash Surrender Value which can be used to an “automatic premium loan” in the event premiums aren’t paid within the grace period.  Cash values can also be taken, subject to tax, upon surrender of the policy.

Reduced paid-up values, means that after a certain period of time the policy owner can cease paying premiums in exchange for accepting a fully paid-up policy for a lesser amount than the original policy.

Free Report for more details: Refer to Free Report section to request a Free Report on Life Insurance.
Free Quote: To request a Free Quote refer to Quotes section.