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Is Your Life Insurance Quoting Always Free?

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Life insurance provides the benefits of both immediate death and future death-benefits paid to beneficiaries upon the policy holder's death. However, the benefits only begin to pay out once death has occurred. What's more, these benefits are not simply a lump-sum amount, but are paid out over a period of time.

You see, death-benefits aren't "free money," as you might be led to believe. In fact, paying out such benefits immediately is considered to be contrary to the purpose behind the policy in the first place. So, how is it possible to receive such benefits in a predetermined amount of time, without any upfront cost?


You'll find that there are two types of rider options available to you when purchasing term life insurance. The most common is a rider that pays out the death-benefit (either upfront or within a certain amount of time) and an additional amount of living benefits, which are paid out at regular intervals throughout the policy's life.


Yes, life insurance does provide the advantages of death-benefits and living benefits, too. Living benefits are paid out before death, and death-benefits can be paid out well before death, too. Want more in-depth information on the differences between death-benefits and living benefits? Contact a Plentii agent today.

The way this works is that you have a fixed payment amount based on an actuarial table detailing life expectancy tables for your selected age group. (The table itself is known as the life insurance cash value.) Once you reach a certain age, this value is adjusted so that your payments are in line with the expected life span, that way you don't run out of money before you die.

This adjustment, known as the replacement premium, ensures that your death-benefit doesn't become depleted when you reach the age of retirement. Essentially, this rider ensures that your final expenses are paid as you enjoy your last years on earth.

This type of rider is also available for many life expectancy or indexed annuities. You may be required to undergo medical screening, for example, before enrolling in an annuity with this rider. Also, if you move from a high-risk to a low-risk status, the original investment may be decreased. For instance, if you were once high-risk because of your history of illness but are now deemed "high-risk" because of your new life expectancy, the previous high-risk status will be withdrawn from your account, reducing your annuity's value.


With this rider, the insurance company allows you to supplement your loss of face amount on your original annuity, with additional amounts that are equal to the difference between your actual face amount and the current life expectancy. In other words, this rider prevents your death-benefit from becoming depleted if you are diagnosed with a chronic illness in the future.


In the course of their lifetime, some people face a disability or a chronic illness that substantially lowers their income. If this occurs, the rider's additional funds allow them to make the same monthly payments as they would if they were still working.

Plentii understands that these accelerated payments are most useful to people who are in reasonably good health. They can use the money to pay some short-term bills, go on an extended vacation, or pay off a mortgage or a child's college tuition. This type of rider also works well for people who anticipate a significant increase in medical expenses in the future.

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The insurance policies generally set the maximum benefit level at a percentage of the insured's current lifetime death-benefit amount. Once the insured has reached the enhanced death-benefit, this policy provides additional coverage until the time of departure. The insured must maintain these additional benefits at the time of death.

This option offers many advantages, including cost savings, tax benefits, flexibility, and peace of mind. Your life insurance quotes are always free. You will never pay a premium or receive a benefit unless you choose to accept it. There is no upfront fee, co-pay, or deductible. It is considered an "academic benefit" that most companies offer in addition to the standard policy.

Many life insurance companies offer the accelerated death-benefit, but there are several that do not. To receive this option, you may need to contact several life insurance companies or request a quote from each. Term life insurance companies usually do not offer this option, so you may need to go through an investment firm, a bank, or other financial institution for this rider. You can learn more about this topic by contacting a Plentii agent today!

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Run Your Business. We Do The Math! Get a professional bookkeeper at a price you can afford, zero learning curve, & a signed financial statement by a CPA! Get Plentii Done Today. We do your Bookkeeping & file your Business Tax Returns! We don’t refer you to a Tax Professional after doing your Bookkeeping because we are the Business Tax Returns Expert!
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