Life insurance related products and riders
Riders are actually the alterations to the insurance policy and they are added to modify the skeleton policy and provide extra features which the policy owner requests. The usual riders added to the base policy are accidental death and premium waiver which can renounces future premiums if the insured person becomes disabled.
Other phrases that may be of interest to a potential user of life insurance is joint life insurance, survivorship, modified whole life, single premium whole life and group life insurance.
Joint life insurance can be both term or a permanent policy and it can be used to insure two lives. After the second death, the beneficiary can expect to receive the proceeds.
Survivorship life is similar to the above mentioned with one exception – this type is reserved for whole life policy only. Single premium whole life is self explanatory and this is the variation that has one premium only, which is payable as soon as the policy matures.
With modified whole life policy, you have a whole life policy with several smaller premiums that are valid for a certain time period. Once that period expires, the premiums go up for the rest of the policy period.
Group life policy relates to the type of the policy where a group of people is covered. This is typical for company employees, members of some union, association or other type of organisation. Here, the individual insurability is not an issue and the insurance company will pay attention to the number of people in the group and their financial strength as a whole. Group life insurance frequently includes a provision for a person who wishes to leave the group and obtain personal coverage.
In the recent years, the insurance companies adjusted their offers to senior citizens and addressed their needs. Face value whole life insurance policies can in these cases range from low to moderate so that they would be affordable to pensioners. Since the policy proceeds can be used for the expenses that follow death, another name for these types of policies is final expense insurance.
There are also preened/prepaid insurance policies that can also be whole life policies available at any age. Even so, they are usually intended for older part of population as they are mainly created to cover burial expenses. To facilitate the entire procedure, the applicant can sign an arrangement with a funeral home to which the proceeds will be directed upon the applicant’s death. According to the contract, should there be any extra money, it usually goes to the estate of the insured person or the beneficiary.