Modified Premium Whole Life Insurance Explained

Modified premium whole life insurance is very similar to basic traditional whole life insurance.  The difference between the two products lies in the premium structure of the contracts.  In a traditional whole life insurance policy, premium payments are flat through the life of a policy.  With a modified premium whole Read More »

Which Life Insurance Company Has The Lowest Rates

While this question appears to be straightforward, it is not.  Many factors determine the cost of insurance, and no life insurance company has the lowest rates for everyone.  While no one company has the lowest rates for  and everyone, almost every life insurance company probably has the lowest rate for Read More »

What Is The Law Of Large Numbers

The law or large numbers is a statistical principal relating the accuracy of a past observed probability of an event taking place being able to predict a future probability of the same event.  This law is used in the life insurance industry to predict the likely amount of deaths that Read More »

What Is Life Insurance?

Life insurance is a way to transfer the financial risk of someone passing away from the beneficiaries and heirs to the life insurance company.  A life insurance policy is a contract between the owner of the policy and the insurance company which promises to pay a stated death benefit upon Read More »

Life Insurance Dividend Explained

Dividend payments are a feature of whole life insurance policies.  The dividend payment is a way for whole life policy owners to take part in the money an insurance company makes.  This is especially important for owners of policies with mutual life insurance companies, as the policy owners are also Read More »

How To Use Life Insurance As An Investment

Many people know that life insurance can provide protection from the financial risk of an early death, but fewer people realize that life insurance can actually simultaneously be an excellent investment as well.  During a policy owners life, a life insurance policy can accrue a very large cash value.  The Read More »
How To Get Life Insurance Quotes Without A Medical Exam

How To Get Life Insurance Quotes Without A Medical Exam

A medical exam is not needed to obtain a life insurance quote in most cases.  Life Ant will compare quotes with only basic information, and an estimate of current health.  Life insurance costs do depend in part on the assigned health rating, which is determined through a full medical exam Read More »

Will A Life Insurance Agent Compare Insurance Quotes

Life insurance agents may have the ability to compare life insurance quotes from different providers, but they also may not.  There are different kinds of agents, and every agent to some extent has a conflicting agenda with their clients.  The client's agenda is to get the least amount of life Read More »

What Is Surrender Value

Surrender value refers to the amount a life insurance contract is worth after any charges and fees from the insurance company, if the contract is fully surrendered (terminated early with value remaining). This is not necessarily the same as the cash value, which is calculated before any fees are taken Read More »

Reinstatement Of Life Insurance

Reinstatement is the term for making a life insurance policy active again after it has lapsed.  Reinstatement only happens after the grace period has ended, and the life insurance contract is no longer in force.  The ability to reinstate a policy is not guaranteed by law, so the availability of Read More »
owner's role in life insurance policy

What Is An Owner’s Role In A Life Insurance Policy

The owner of a life insurance policy is the person who has control over all of the policy's rights.  These rights include the right to change beneficiaries, the right to transfer ownership to another party, and the right to make material changes to the life insurance policy.  Material changes may Read More »

Universal Life Insurance

Universal life insurance is a permanent form of life insurance like a whole life insurance policy, but is meant to provide the ability for a  higher internal rate of return on the policy like a variable universal life insurance policy, but without bearing the risk of market exposure. A universal Read More »

Life Insurance Health Rating

Almost every insured person in a life insurance contract has gone through the underwriting process of an insurance company.  The purpose of underwriting is to attempt to assess the probability that the insured will die at a normal or premature age, and what the life expectancy of the insured person Read More »

What Is A Life Insurance Rider And How Are They Used

A life insurance rider is an additional feature added to a life insurance policy.  A rider is a legal term, meant to denote an amendment, change or addition to a legal contract.  Life insurance riders are features not found on a basic life insurance policy, and may provide benefits to Read More »

Modified Endowment Contract (MEC) Explained

A modified endowment contract (commonly referred to as a MEC) is a tax qualification of a life insurance policy which has been funded with more money than allowed under federal tax laws.  A life insurance policy which becomes a MEC is no longer considered life insurance by the IRS, but Read More »

Life Insurance Surrender

A surrender is a full cancellation of a life insurance policy.  You are allowed to surrender your policy at any time.  A surrender does not affect your credit score, and a surrender will not affect your ability to get a new life insurance policy in the future (but changes in Read More »

What Happens When A Life Insurance Policy Lapses

A lapse means a life insurance policy is no longer an active contract.  A life insurance policy will lapse when premium payments are missed and cash surrender value is exhausted on a life insurance policy.  The term lapse refers to a "lapse in coverage", meaning the life insurance contract will Read More »

Joint Life Insurance Explained

Joint life insurance is a life insurance policy underwritten on the lives of two people.  These to people are usually spouses, but not always.  There are two forms of joint life insurance, first to die and second to die (second to die is also known as survivorship life insurance).  Joint Read More »

What Is A Life Insurance Premium

A life insurance premium is the payment made to the life insurance company, to pay for a life insurance policy.  This term is also applied to payments remitted for annuity contracts.  Typically the premium will pay for the cost of insurance, but excess premium over the cost of insurance can Read More »

Chartered Life Underwriter Designation

A chartered life underwriter is the highest designation in the life insurance industry that a life insurance agent can obtain.  The designation is granted by The American College. The American College grants the Chartered Life Underwriter (CLU) designation after the candidate passes a series of classes and exams.  A CLU Read More »

Variable Universal Life Insurance

Variable universal life insurance (VUL) is a permanent life policy whose cash value depends in part on the performance of variable sub-accounts within the insurance contract.  The variable sub accounts are usually modeled after mutual funds, but may contain their own separate free structures. A variable universal life insurance contract Read More »

What Is An Insured In A Life Insurance Policy

This is one of the most fundamental and concepts relating to life insurance.  A life insurance policy, at heart, is a contract between the insured and the life insurance company.  When an insured person dies, the life insurance company is bound to pay a death claim to the beneficiaries.   Read More »

Life Insurance Free Look Explained

The free look period for a life insurance contract is a trail period.  This period is for policy owners, and is mandated by most states in the United States.  The free look period allows a policy owner to review their contract after it is delivered, without having to make an Read More »

What Is A Grace Period?

The grace period is the time after a missed insurance premium is due, where a life insurance policy will not lapse even though the payment is past due.  The grace period is a very useful feature, whose inclusion in every life insurance policy is mandated by every single state in Read More »

Death Benefit Of Life Insurance Explained

The death benefit is the amount of money that is paid out when a valid life insurance claim is filed.  The death benefit is paid to the stated beneficiaries of the contract, which are determined by the owner before the insured person is deceased.  The death benefit is used to Read More »

What Is A Life Insurance Agent

A life insurance agent is a person whose expertise is in fitting clients with life insurance to suit their needs.  These needs can range vastly, from income protection for loved ones in the event of an untimely demise to transferring assets efficiently from an estate after death, and even to Read More »

Cash Value Of A Life Insurance Policy

Most people know about the death benefit paid by life insurance policies, but many people are not aware that life insurance policies can also accrue a cash value over the lifetime of the policy.  This cash value can be withdrawn or loaned against with a loan from your life insurance Read More »

What Is A Life Insurance Beneficiary?

The beneficiary it the named person or entity on a life insurance policy that will receive the death benefit upon the death of the insured. The death benefit is the payout paid by the insurance company when the insured passes away.  More than one person or entity may be named Read More »