LI (Florida) Policy Riders, Provisions, options, and exclusions

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Waiver of Premium

Waives Premium Payments if the insured becomes disabled.

Waiver of Monthly deductions

Waives monthly deductions from the policy if the insured becomes disabled, allowing the policy to remain in force without financial burden.

Guaranteed Insurability

A provision allowing policyholders to purchase additional insurance at specified times without proving insurability.

Payor Benefit

A feature that ensures the premium payments of a minor's policy are waived if the payor becomes disabled or dies.

Accidental death

Pays an additional benefit if the insured dies due to an accident.

Accidental Death Dismemberment

Provides benefits for both accidential and specified bodily injuries.

Term Riders

Adds Temporary coverage for a specific term to an existing policy.

other insureds

Extends coverage to additional individuals, such as family members

Long Term Care

Provides benefits to cover long-term care expenses if the insured becomes chronically ill or disabled

Return of Premium

Returns premiums paid if the insured outlives the policy.

Disability

Provides income replacement if the insured becomes disabled and unable to work

Cost of Living

Adjusts the policy’s benefits or premiums based on changes in the cost of living

Entire Contract

Policy and attached documents constitute the entire insurance agreement

Insuring Clause

Outlines the insurer’s promise to pay benefits under specified conditions

Free Look

Allows Policyholders a period to review the policy after purchase. Can be returned for a full refund if unsatisfied within a specific timeframe.

Consideration

Premium payment and application information provided to the insured

Owners Rights

Rights granted to the policy owner, including the right to make changes to the policy. Includes right to name beneficiaries, assign the policy, and select options.

Beneficiary Designations

Primary and Contingent

Primary

Receives proceeds upon the insured’s death if alive

Contingent

Receives proceeds if the primary beneficiary is deceased.

Common Disaster

Specifies beneficiaries order of priority if they die simultaneously

Minor Beneficiaries

Designates individuals under the age of majority as beneficiaries

Designation by class

Names beneficiaries as a group rather than individuals

Premium Payment types

Modes, Grace Period, automatic, level/flexible

Modes

Different Frequency options for premium payments

Grace Period

Allows payment after the due date without policy lapse

Automatic Premum Loan

Utilizes policy’s cash value to pay overdue premiums

Level or Flexible

Premium payment remains constant or can be adjusted over time

Reinstatement

Process of restoring a lapsed policy to active status. Requires payment of overdue premiums and may involve evidence of insurability

Policy Loans, Withdrawals, Partial Surrenders

Options to access the policy’s cash value. Loan accure interest and may reduce death benefit; withdrawls and partial surrenders reduce cash value.

Non-Forfeiture options

Choices available if policy lapses due to non-payment of premiums. Options include cash surrender value, reduced paid-up insurance, or extended term insurance.

Dividends and dividend options

Distribution of surplus earnings by participating policies. Dividend options include cash, paid-up additions, premium reduction, or accumulation at interest.

Suicide

Exclusion of death benefit if the insured commits suicide with a specific period. Usually within one or two years of policy insurance, after which full benefits are payable.

Misstatement of age and gender

Adjustments to benefits or premiums due to incorrect age or gender information. Policy terms may be adjusted based on corrected information.

Settlement Options

Alternatives for receiving policy proceeds. Options include lump sum, interest, income, fixed period, fixed amount, or life income.

Accelerated death benefits

Allows policyholders to receive a portion of the death benefit if terminally ill. Provides financial assistance for medical expenses or quality of life improvements.

Policy Exclusions

War, Aviation, Dangerous Occupation.

War

Excludes coverage for death/injuries related to war or acts of war. High Risk/ Unpredictablilty.

Aviation

Excludes coverage for death/injuries sustained during aviation activities. Private aviation, Piloting or being a passenger in a non-commercial aircraft.

Dangerous Occupation

Excludes coverage for death/injuries resulting from engaging in hazardous occupations. EX. Firefighting, law enforcement, stunt work.