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.
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 […]
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 […]
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 […]
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 […]