What is Life Insurance Policy Features?

life insurance policy features

Congratulations!! You are a step close to finding out the best life insurance policy features for you. If you are reading this article, it means that you are eager to get the best coverage. You might already read a lot of, or this is your first bits of information about a life plan. If you want to get the best coverage for your unique needs, then read on and find out more about these life insurance policy features. 

What is Accidental Life?

According to statistics, accidents are one of the leading causes of fatality around the world. In the United States, it is the number 1 cause of death for people between ages 25 to 44 years old. With an accidental life insurance policy, it does not cover death that is caused by illnesses. It is a type of policy that you can get in minutes. It will not question you about heath and will not ask you to go through a medical examination. 

Although it is a standalone policy, it is also a popular addition to the traditional life plan. If you want a plan that covers health, then it is a good idea to get permanent life coverage with this as additional coverage.

What is the Graded Benefit Policy?

It is also known as the modified benefit and has a longer waiting period of 24 to 36 months before the death benefit is given to the beneficiary. In case health-related death occurs, before the 24 or 36 months then only a refund of premium and interest is paid to the beneficiary. The percentage of interest varies from one insurer to another.

Remember that death from an accident and not from health illnesses can pay 100% of the death benefit. The insurers can give it right away on the first day. There are two types of graded benefits that you need to know.

  1. If the insured died before the end of the policy from an illness, then the premium paid and 10% of the policy will go to the beneficiary. However, if after the graded policy, then the accident and health-related death can get 100% death benefit.

Example: A policy of $25,000 with a monthly premium of $100 a month, and the insured died after 12 months. The beneficiary will get $1,200 plus 10% of the policy amount of $120. 

    2.  If the insured dies because of an illness in year 1 of the policy, then 30% goes to the beneficiary, year 2 70%, and year 3 is 100% for both accidental and health-related death. 

What is a No Medical Examination Policy?

no medical examWith no medical exam life insurance plan, applicants will not have to go through the traditional medical examination process. The good thing about it is that it offers similar benefits like regular coverage with a medical exam. However, most policies have lower coverage. You still need to go through the underwritten process with a comprehensive medical questionnaire that you need to answer with full honesty. Yes, it is good, to be honest with your current medical condition. It is because it is reviewed using public documents like pharmacy reports to know your list of medications. 

What is Universal Life Policy?

It is a permanent policy that can stay as long as you live. Also, it has a permanent premium amount guaranteed. Some can offer a definite time of coverage of 10, 20, or more years. This plan’s beauty is that it is already permanent, so no need for any conversion.

What is a Rapid Issue Policy?

It is a life insurance policy features that can offer faster underwriting processes and health checks from the public report, such as from pharmacies and the Motor Vehicle Department. It is good for an applicant with clean medical records. It comes with a guaranteed normal premium but a lower amount of coverage because of the risks involved in a faster underwriting process.

What is Guaranteed Issue Policy?

It is a faster way to get a life plan without any requirements or health questions. The name itself is a guaranteed policy issue, but they have a graded benefits period of 24 months. Within that period, if the insured dies before the graded ends, then the beneficiary will only get the premiums paid and 10% of the death benefit. Also, the 24 months period does not cover accidental death. After the graded period end, then the full amount is given to the beneficiary.

What is Modified Benefit?

This policy has a waiting period of 24 to 36 months before the release of the death benefits after the insured’s death. In case the insured death is due to a health illness, then the beneficiary will acquire a certain percentage of the death benefit. It is true if the insured died before the end of the policy. The amount differs from one insurer to another.

Take note that 100% full payment of death benefits will happen for accidental and non-health-related death. There are two types of modified benefit, such as:

  1. First is the one that only pays 10% of the death benefits, plus all premiums paid for death due to the insured’s health before the policy end. Death after the period, then the beneficiary will get 100% for both accidental and health death.
  2. For death due to health in 1 year, then 30% of the death benefits if given to the beneficiary. After two years, 70% and three years is 100% for both accidental and health death.

What is the Return of Premium Policy?

It is a type of policy that returns all premiums paid right after the policy ends. For instance, in a 20-year policy, all premiums paid within 20 years is given to the policy owner. However, this type of policy has a high monthly premium because of the return premium. Also, the policy can earn cash value by the end of the term. If you want to get the cash value before the end of the term, then you need to surrender the policy.

How to make an Online Application?

online application formThere are only a few insurers that allow a full online application without the need for an agent. Coach B. Life Insurance Agency is one of them.  Also, some products are exempted from a full online application. Policies available as full online applications are sent directly to underwriting once the application is complete. To start the review process from public reports and documents. Your road record, pharmacy, and medical record are subject to review. 

It is an ideal process for those who want a policy quickly and without any fuss. One can go online and use the quote and apply platform at Coach B. Life Insurance, we are happy to assist you and see if you will qualify with one of our life insurance policies. 

What are Living Benefits as Life Insurance Policy Features

A living benefit is not a type of policy, but it is a group of special riders or life insurance policy features that can add to an insurance policy. It is a feature that allows insureds to enjoy death benefit while still alive. Hence, it is very popular as a living benefit.

What is an Accelerated Benefit Rider?

It is a rider or life insurance policy features that are useful for people with a terminal illness or only have less than one year to live. This rider will allow the insured to withdraw their benefit for up to 95 percent. The insurer does need to know how you will use the money. 

What is a Chronic Illness Rider?

It is a type of rider that is almost similar to the long term care policy. It is a good addition to typical life insurance coverage. Also, many insurance providers are now adding life insurance policy features for no added cost to their clients. Hence, it is a rider that gives the policyholder the ability to aid in their long term medical care plan. Some may give $5,000 or more per month, depending on the insurer. It can pay for a nursing home or any healthcare facility.

In case you need to apply for this rider, you cannot perform two or more of these activities. It is called daily living activities or ADLs for at least 90 days.

  1. Bathing- If you are unable to bathe yourself in the form of a sponge bath or shower, you can apply. Also, if getting in and out of the shower room is impossible for you, you can qualify.
  2. Continence- It is an inability to control both bladder and the bowel function. 
  3. Dressing- If you cannot put on clothes or take off, buttoning and tying shoes, you can also qualify.
  4. Eating- If you need the help of someone to eat and drink, you can apply for this rider.
  5. Toileting- Those who cannot go and off the toilet all by themselves are qualified for the rider.
  6. Transferring- If you cannot get in and out of bed or move your wheelchair, you can apply for one.

What is a Critical Illness Rider?

It is a type of rider that can give the policyholder access to get the death benefit in case of a critical illness to aid in paying for the medical care or bill. The following are illnesses that this rider can cover:

  • Stroke
  • Blindness
  • Heart attack
  • AIDS
  • Paralysis
  • Cancer
  • Major burns

Depending on the insurers, there are more illnesses that a rider can cover. 

What Is Whole Life Insurance?

Some call it a straight life insurance policy. It can remain for a lifetime of the insured, provided monthly premiums are paid. It matures by the time of death of the insured or if the insured reaches 100 years old. Many opt for this type of because of its ability to incur a growing cash value. It grows from the premium and the interest of the insurer. 

Moreover, one can borrow money from the cash value. For instance, you need quick cash for any purpose. You can get some money from the cash value earned by the policy. If you want to find out how you can ask Coach B. at 1-800-342-1537.

Meet the team

About Coach B.

After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.

In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.

Visit my Website

More Articles