Life Insurance Considerations

Keep in mind that policy terms can vary significantly from one insurer to the next, and insurers frequently change the policies they offer.

Common Features

Term life insurance and permanent life insurance are the two basic types of life insurance that companies offer in various forms.

Premiums are determined based on the amount of coverage, the type of plan purchased, and your age and health status. 

Unlike term policies, permanent policies may have remaining values available to automatically pay premiums when a payment is missed or a policy is cancelled.

It is important to note that policies can be in force even if the payment of premiums has stopped or if money has been borrowed against the policy. Provided the policy was in force at death, there is no time limit on claiming a payout.

Settlement Options
Grace Period
Viatical Settlements


Other Considerations

Avoid Lost Policies

Follow these steps to ensure your beneficiaries can easily locate your life insurance policy:

  • Check that your company and agent have current contact details for all listed beneficiaries.
  • Provide your beneficiaries with the name and contact info of your agent and the company that wrote the policy.
  • Keep a current copy of your policy in a safe place, with your will or estate paperwork. Make sure your family or beneficiaries  know the location and will have access.
  • Consider asking your insurance company for an annual policy statement if one isn't provided.

Need help finding a policy? See Lost Policy.

Joint Policies for Couples
Group Versus Individual Policies
Changing Policies