DECREASING TERM LIFE
Initial amount of insurance shown in the schedule reduces during the term according to the amortization schedule in the policy.
Initial amount of insurance shown in the schedule remains level for the term of coverage.
The amount of life insurance payable is limited to the amount of the premium(s) paid in the event the death of an Insured is the result of any of the following: within two (2) years of the Effective Date of this policy; (1) suicide, while sane or insane; (2) war, declared or undeclared; (3) flight in a non-scheduled aircraft.
Coverage on Credit Life is usually equal to the total scheduled indebtedness (subject to state or company maximums). It may be written as “decreasing,” in which case the amount of insurance decreases by equal amounts each month in an amount equal to the original amount of insurance divided by the term in months. In some cases, it may be written as “level,” in which the amount of coverage remains the same throughout the term of the policy. It may be written as either single or joint in most cases.
PREMIUM AND RATES
Single premiums are collected at the time the indebtedness is incurred and remitted to the carrier. Rates vary according to state regulations. Single premium rates are usually quoted in cost per $100 of insurance coverage per annum.
Outstanding balance premiums are collected monthly and remitted to the carrier monthly. Rates vary according to state regulations. Outstanding balance rates are usually quoted in cost per $1,000 of insurance coverage per month.
AGE AND LIMITS
Minimum age is 18, maximum age is 65 (the term of coverage does not extend beyond the debtor’s 71st birthday).
Maximum insurance amount is $100,000, subject to Company guidelines.
Term of indebtedness not to exceed state limit - 120 months for Decreasing Term; 60 months for Level Term; 12 months for Single Pay Notes
BENEFITS TO CUSTOMER
Will pay off or reduce the loan in case of death and relieve spouse or estate of the burden
Easy to acquire
No occupational restrictions
No physical examination required