What Is a Life Insurance Policy Rider?

What Is a Life Insurance Policy Rider?

Traditional policies usually leave little room for modification or customization, except for deductibles and amount of coverage. Policy riders allow policy owners to create a life insurance policy that fits their specific needs, for an extra premium.

Our Experts Explain the Automatic Premium Loan Provision in Life Insurance

Our Experts Explain the Automatic Premium Loan Provision in Life Insurance

Many companies provide an automatic premium loan provision, but the policyowner must in some states actively elect to make the feature operative. When operative, if a premium is unpaid at the end of the grace period and there is sufficient cash value, the policy automatically will advance a loan to pay the premium and prevent […]

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 […]

Why the Application for Life Insurance is Always Attached to the Policy Itself

Why the Application for Life Insurance is Always Attached to the Policy Itself

The policy owner must be provided with a copy of the application that both eliminates uncertainties as to what is contained on it and also assures the policyowner that the policy in his or her hands contains every relevant document. The insured and/or policyowner is given a chance to be sure that his or her […]

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 […]