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What if I become disabled and can't pay the premiums? Provisions or "riders" that provide additional benefits can be added to a policy. One such rider us a "waiver of premium for disability." With this rider, if you become totally disabled for a specified period of time, you don't have to pay premiums for the duration of the disability.

What happens if I fail to make the required premium payments? If you miss a premium payment, you typically have a 30 - or 31-day grace period during which you can pay the premium with no interest charged. After that, the company -- with your authorization -- can draw from a permanent policy's cash value to keep that policy in force. In some flexible-premium policies, premiums may be reduced or skipped as long as sufficient cash values remain in the policy. However, this will result in lower cash values and a shortened coverage period.

Are other riders available? Yes. An "accidental death benefit," for example, pays an additional benefit in case of death resulting from an accident.

Some companies provide "accelerated benefits," also known as "living benefits." This rider allows you, under certain circumstances, to receive the proceeds of your life insurance policy before you die. Such circumstances include terminal or catastrophic illness, the need for long-term care, or confinement to a nursing home. Ask your agent for information about these and other policy riders.

When will the policy be in effect? The date that insurance goes into effect could be different from the date the company issues the policy. If you decide to purchase the policy, always check precisely when the insurance becomes effective.

Is a "buyer's guide" available? Most states require companies to give consumers a buyer's guide to help them understand life insurance terms, benefits and costs. Ask your agent for a copy.

 

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