Different Types of Life Insurance

Different Types of Life Insurance

Unlike rider policies, these types of life insurance policies can be purchased separately; with each of them having their own specific purpose. There are typically considered as a less common, more dangerous option for life insurance.

What are the Alternatives to Second-to-Die “Survivorship Life” Insurance Policy?

What are the Alternatives to Second-to-Die "Survivorship Life" Insurance Policy?

Survivorship life is a unique life insurance product for its intended purpose: to provide death benefits only when the last covered insured dies. The closest alternative strategy is to insure each life separately, but that strategy may often be a relatively poor solution. Typically, after a death, the estate’s personal representative has three principal alternatives […]

The Life Insurance Early Cash Value Rider Explained

The Life Insurance Early Cash Value Rider Explained

The early cash value rider is an optional rider providing for higher cash values in the early years of a policy in the event of a full surrender for cash. It effectively waives the surrender charges and premium load associated with a life insurance policy, or returns all or part of the cumulative paid premiums, […]

What are the Legal Rights of Intended and Incidental Beneficiaries in Life Insurance?

What are the Legal Rights of Intended and Incidental Beneficiaries in Life Insurance?

There are two types of beneficiaries: intended and incidental.  Intended beneficiaries are the only type with standing (i.e. a legal position that bestows the right) to sue the insurer to enforce their rights under the contract. As its name implies, an intended beneficiary is one who the parties to the contract expected would benefit from […]

Consideration for Adding a Term Life Insurance Rider to a Permanent Life Insurance Policy

Consideration for Adding a Term Life Insurance Rider to a Permanent Life Insurance Policy

The most common and familiar rider is the term insurance rider. When purchasing insurance, buyers may add virtually any form of term insurance—increasing, decreasing, or level—to a base permanent policy. The principal advantage to the insured of using a term rider is that the insurer issues the additional insurance on a net cost basis, without […]

Legal Considerations When Children Buy Life Insurance

Legal Considerations When Children Buy Life Insurance

Many states allow a minor fifteen years old or over to purchase a life insurance contract on his or her own life but upon reaching the age of majority, he or she can void the contract. The insurer is bound by a life insurance contract made with a minor unless and until the minor disaffirms […]

Insurable Interests in Life Insurance Contracts

Insurable Interests in Life Insurance Contracts

Insurable interests are based on the relationship between the policyholder and the insured. These types of relationships fall into three broad categories: blood relatives, marriage, and business relationships.  Blood Relatives The following blood relationships will generally give rise to an insurable interest: A parent usually is deemed to have an insurable interest in his or […]

4 Ways of Determining the Right Life Insurance Policy for You

4 Ways of Determining the Right Life Insurance Policy for You

Attorneys, accountants, life insurance agents, and other financial services professionals constantly are required to provide an opinion as to the efficacy of a policy for a particular client and to assist in selecting between competing policies. This discussion will focus on the factors that professionals must consider in determining the right policy. The material provides […]