||Estate Creation and Estate Preservation
||Single Life, Joint & First To Die, and Joint & Last To Die
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:
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.
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
|Participating or Non-participating:
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
Non-participating do not share in the Insurance Company’s profits.
|Renewable & Convertible:
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
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.
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:
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:
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.
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.
||To request a Free Quote refer to Quotes section.