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Life Insurance Riders Riders are amendments which can be added to a life insurance contract. Attaching riders to a life insurance policy before it is purchased is one way to tailor a the policy to the customer's needs, similar to electing factory-installed options on a new car. Typically, the attachment of a rider to a policy will raise its cost. Common riders A spousal rider effectively converts a single-life insurance policy into a multiple-life insurance policy, providing coverage for both you and your spouse. A child rider works like the spousal rider but extends coverage to an offspring rather than to a spouse. A disability rider augments the coverage of a life insurance policy so that it provides a benefit if the insured becomes disabled, even though such is a non-lethal event. A return of premium rider (ROP) effectively converts an ordinary term life insurance policy into ROP life insurance. At the conclusion of the term of coverage, if the insured is still alive, the policy owner is remitted the sum of all his premium payments. A waiver of premium rider stipulates that your insurance company will waive your premiums in the event that you become disabled. A guaranteed no-lapse rider is attached to a universal life insurance policy and relieves the policy owner of responsibility to monitor his cash value. This rider comes with a required payment schedule, effectively hybridizing the universal policy with whole life insurance. So long as the policyholder adheres to the payment schedule, the policy will not lapse. A no-lapse guaranteed death benefit rider produces the same result as a guaranteed no-lapse rider, freeing the policy owner from responsibility over his cash value growth, but the two riders differ in the machinery used to accomplish this end. A long-term care rider works much like a disability rider in augmenting coverage to pay a benefit even for a non-lethal event. In this case, the benefit will be paid if the insured comes to require long-term care. This may or may not coincide with debilitation. An accelerated death benefit rider (including chronic or critical illness) provides access to a part of the death benefit, which can then be used as living benefits.

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Life Insurance The policy could be a term policy, whole life (or a variation of whole life such as 20 year payment life, or life paid up at 65), endowment, universal life, or some other type. The type of policy will determine many other aspects of the policy, such as whether it has cash or loan values, the length of time you are scheduled to pay premiums, etc. Permanent Life Insurance Permanent life insurance is a form of life insurance where the policy is guaranteed for the life of the insured (assuming the policy is kept current and the premiums are paid). The four basic types of permanent insurance are whole life, universal life, limited pay and endowment. Whole life insurance offers a level premium and a guarantee by the insurance company that the policy will earn cash value. Often referred to as permanent insurance, the death benefit guarantee for a whole life policy can be anywhere from age 100 to age 121. Once a policy has been issued both the death benefit and premiums remain the same and typically cannot be changed or altered. Universal life insurance is another type of insurance product intended to provide permanent insurance coverage only with greater flexibility. A universal life insurance policy also earns cash value and since both the premium and death benefit are flexible the amount you pay can increase the cash values.

A Life Settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policyowner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company. In some cases, an insured’s health may have declined since the policy was issued and the policy may be worth considerably more than the surrender value Financially prudent people measure the value of their non-liquid assets on a regular basis. Real estate holdings, jewelry, fine art - these all fluctuate in market value as times and conditions change, and prudent individuals have these assets appraised from time to time so that they can plan effectively for their futures. Whether to appraise a particular asset depends in part on whether a market for that asset exists. In the case of life insurance, there has not always been a market for policies. For many years, an insurance policy’s value consisted only of its surrender cash value. However, buyers in the life settlement market can and will pay not only the cash surrender value but also for the value in the option to continue the insurance policy, itself. For any individual whose health has eroded, a policy issued at standard or preferred rates is likely to be worth far more than it's cash surrender value. Over 20% of all insureds, aged 65 or older, fall into this category. An appraisal by a firm, such as Coventry Financial, of such an individual's life insurance policies is in order whenever a decision regarding either an increase or decrease in existing coverage is being considered or simply as part of a routine periodic assessment of the individual's wealth. A life settlement is an alternative to this surrender or lapse of a policy, or when the owner of a life insurance policy no longer needs or wants the policy, the policy is underperforming or can no longer afford to pay the premiums. It gives policy owners the ability to access the value by selling their existing life insurance policies and receiving a cash settlement in excess of the cash surrender value (if any)

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Dean Normal Dean 2 1 2011-09-07T18:30:00Z 2011-09-07T18:30:00Z 1 407 2321 DAI 19 4 2850 9.3821 Final Expense Insurance Often referred to, as burial expense insurance or senior life insurance is an ideal investment for the aging population. If you are getting into the later years of your life and you are worried about providing enough financial protection for your family at the time of your death, this type of life insurance policy may be a tool to use. Although there are many forms of life insurance today, this particular type offers several key benefits you cannot find otherwise. Plus, it can be one of the most affordable insurance policies available to you. Final Expense Insurance Is Affordable The goal in purchasing this form of life insurance is that the people you list as beneficiaries of the policy will use the proceeds from a death benefit to pay for your burial, final medical costs and funeral costs. It is not a policy that has a design to provide your family with thousands and thousands of dollars to live off. This is why it is so important for those that are older. Seniors will benefit from these policies because of the lower face value of them. They are just enough to pay immediate costs. With this reduced face value comes an additional benefit that most seniors will appreciate. That is a lower cost. Most policies require much smaller premiums, which means that you can make affordable monthly payments to obtain and keep this insurance. This is considerably different form larger, traditional life insurance policies where the premiums are expensive. Seniors Protect Loved Ones As you both age, it can be a common thought to wonder what will happen to your spouse if you should die before they do. Will they have the money to bury you and provide for a proper funeral? Will you have the ability to provide this to them? Final Expense Life Insurance can help you to cover those costs. This is an ideal reason to purchase these affordable policies. Here are some important facts about this type of life insurance: 1. This type of insurance is affordable so even those on strict limited budgets may be able to afford it. 2. The policy pays out the death benefit within 24 hours (in most cases) of your death. There is no longer waiting period. 3. There is no requirement of a medical exam to obtain burial expense insurance. You may not be in perfect health and you will still qualify for this type of insurance protection. 4. The policy is available in a variety of face values so you can select the amount of coverage you need. 5. You can (and should) protect your family from financial difficulty by obtaining this type of policy. For the average American senior citizen, having any form of life insurance is important. Final Expense Life Insurance is a unique policy in how it is structured. It may just be an ideal choice for you and your loved ones.