Life & Health Insurance

What kinds of Life insurance are there?
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.

1. Traditional Life Insurance which includes term and whole (permanent) life policies.
    
2. Universal Life (Permanent)

Level Term life insurance provides a low cost level death benefit for a ten, twenty or thirty year period. Coverage is guaranteed all the way to age 90. Inexpensive term insurance can be very valuable to a family or a business that shoulders the responsibility of providing the financial means to meet future obligations such as: Family Living Expense, Children's Education Needs, Mortgages, Business Loans, Business Buy/Sell Agreements, Key Person Insurance, Miscellaneous Debit Obligations.

In addition to the traditional life insurance policies, there are several options you should consider when purchasing a policy:

   •    Guaranteed Renewability Benefit: Allows coverage to be renewed at the insured's attained age rate for succeeding 10 year periods to age 90 (without proving insurability)

   •    Disability Premium Waiver: Waives all premiums due while the insured is totally and permanently disabled for 6 months or longer.

   •    Accidental Death Benefit: Provides an increased benefit payment when death occurs accidently (as defined in the policy).

   •    Disability Income Benefit: This rider provides money to continue making monthly mortgage or other debt obligation payments if the insured becomes totally disabled from
        sickness or accident.

   •    Spouse or children Rider: Provides decreasing term life insurance coverage on the insured's spouse and level term coverage on children.

   •    Child Rider: This benefit provides level term coverage on the insured's children.


Whole Life Insurance is the simplest form of permanent life insurance. It provides death benefit coverage up to age 110 and gives you access to guaranteed cash values.

In addition to the traditional life insurance policies, there are several options you should consider when purchasing a policy:

   •    Accelerated Death Benefit: This rider pays out a portion of the death benefit early if the insured is diagnosed with a terminal illness.

   •    Automatic Premium Loan: Pays the premium not paid within the grace period by charging it as a loan against the cash value of the policy, protection the policy from lapsing.

   •    Disability Premium Waiver: Waives all premiums due while the insured is totally and permanently disabled for 6 months or longer.

   •    Accidental Death Benefit: Provides an increased benefit payment when death occurs accidently (as defined in the policy).

   •    Premium waiver for death or disability of payor: Waives all premiums on a child's policy following the death of during the total & permanent disability of the premium
        payor insured until the child is age 25.

   •   Guaranteed Purchase Option: Guarantees the ability to purchase additional life insurance at ages 25, 28, 31, and 34, without providing proof of medical insurability.

   •   Spouse or children term insurance: Provides term life insurance coverage on the insured's spouse and children.
   
   •   Children Term Insurance: Provides term life insurance coverage on all children of the insured.


Universal Life Insurance is a permanent life insurance offering the low-cost protection of the term life insurance as well as a savings element (like whole life insurance) which is invested to provide cash value buildup. Universal Life insurance allows the policyholder to use the interest from his or her accumulated savings to help pay premiums. Advantages of Universal Life; use of savings, tax advantages, cash withdrawals/loans, multiple insureds, lower cost and cash value.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified life insurance professional.

What are the types of disability insurance?
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):

1. Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
    
2. Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.

Disability policies have two different protection features that are important to understand.

1. Non-cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
    
2. Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.

In addition to the traditional disability policies, there are several options you should consider when purchasing a policy:

• Additional purchase options: Your insurance company gives you the right to buy additional insurance at a later time for an additional cost.
   
• Coordination of benefits: The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
   
• Cost of living adjustment (COLA): The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
   
• Residual or partial disability rider: This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
   
• Return of premium: This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
   
• Waiver of premium provision: This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.  

Thank you for your interest in Carolina Underwriters Insurance if you are ready to begin your life insurance quote click here. If you have questions and would like to speak to one of our insurance professionals please call us at 704-849-8080 or 800-418-9092 or via email.
 

1 - Source : MANAGED CARE AND THE STATES