The 4 Most Common Life Insurance Settlement Options

The 4 Most Common Life Insurance Settlement Options

The commonly offered and state-mandated settlement options include payments made as follows: in cash; in a fixed amount over some period of time; for a fixed period of time in some amount; or any of the common annuity options. The critical element to examine is not the options, per se, but whether or not the […]

Our Life Insurance Experts Reveal the Benefits of the Common Accident Provision

Our Life Insurance Experts Reveal the Benefits of the Common Accident Provision

Only about one in three contracts issued specifically includes a common accident provision, or what is sometimes called a survivorship clause or common disaster clause. Insurers have designed the clause to avoid inclusion of death benefits in the beneficiary’s estate if he or she dies within a designated period after the insured. Where found, the […]

Bundling Comes to Life Insurance via Additional Insured Riders

Bundling Comes to Life Insurance via Additional Insured Riders

Additional insured riders generally are term insurance riders on insureds other than the insured named in the base policy. One of the most common uses of the additional insured rider is in what is called the family policy. The family policy insures all or selected members of the family in one contract. Typically the base […]

Life Insurance “Bailout Provisions” and how Having this could Help You

Life Insurance “Bailout Provisions” and how Having this could Help You

Most current assumption and universal life policies use surrender charges rather than front-end loads to recover issuing expenses if the owner terminates the policy in the early years. Some of these policies provide a bailout provision that reduces or eliminates the surrender charge for early termination if the current rate credited to cash values falls […]

4 Methods Used by Life Insurers to Pay Dividends to Policyholders

4 Methods Used by Life Insurers to Pay Dividends to Policyholders

Although most companies provide the basic four dividend options—(1) cash, (2) reduced premiums, (3) dividend accumulations at interest, and (4) additional paid-up insurance—some do not provide all these options. In fact, one large New York company provides no options: the company uses dividends exclusively to reduce premiums. Many other companies, but certainly not most companies, […]

2 Most Common Ways Life Insurers Charge Interest on Policy Loans

2 Most Common Ways Life Insurers Charge Interest on Policy Loans

Despite the fact that companies may use a variable policy loan interest rate, the majority of companies still use a fixed rate, which is commonly 8 percent, although it varies by company and from one policy type to another. This suggests that many consumers prefer the certainty of a fixed rate. Companies that use a […]

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 […]

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, […]