Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ethos to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Social Finance Life Insurance Agency, LLC (SoFi Agency) does not issue or underwrite insurance. SoFi Agency is compensated by Ethos for each issued term life application submitted.
The policies offered are from Ethos Technologies Inc. Coverage and pricing is subject to eligibility and underwriting criteria. Ethos Technologies Inc. (Ethos) operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers. Products and their features may not be available in all states. To help avoid requiring a medical exam, the Ethos application asks certain health and lifestyle questions.
SoFi Agency does not guarantee the services of any insurance company. Once you reach Ethos, SoFi is not involved and has no control over the products or services involved.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Heading out on a vacation can be an exhilarating experience, especially if you’re into adventure activities. However, with increased adrenaline comes increased danger — and decreased coverage from insurance companies.
Being protected in an emergency is valuable when you’re doing something risky, so we’ve gathered some of the best adventure travel insurance policies.
Factors we considered when picking adventure sports travel insurance companies
You’ll want to consider the following facets of travel insurance during a comparison:
Cost. We looked for a mix of affordability and comprehensive coverage.
Types of coverage. Extreme sports insurance isn’t usually included with standard travel insurance, which is why we’ve made sure it’s included.
Coverage amounts. Being underinsured is almost as bad as having no insurance at all.
Customizability. Plans that can be customized offer more flexibility for travelers.
An overview of the best adventure travel insurance
To determine the best extreme sports insurance, we gathered quotes from various companies using insurance aggregator SquareMouth. To do so, we input a sample trip of a 33-year-old from Colorado traveling to New Zealand for two weeks. The total trip cost was $3,400, and activities included hiking and camping.
SquareMouth came back with 16 policies offering varying levels of coverage. Among the six we chose as the best, the average cost totaled $147.18 — though you’ll find significantly lower and higher on this list. Here are our picks.
Basic coverage cost
Recommended for
Battleface: Discovery Plan
Discounted but comprehensive medical coverage.
Travelex: Travel Select
Trip protections and medical insurance.
Tin Leg: Adventure
Extreme adventure sports.
IMG: iTravelInsured Travel SE
Lower-than-average cost with full travel protections.
John Hancock: Silver
Superior trip coverage such as change fee and missed connection reimbursement.
HTH Worldwide: TripProtector Preferred
Huge limits for primary medical coverage.
Top adventure travel insurance options
Let’s take a closer look at our top six recommendations for adventure travel insurance.
Battleface
What makes Battleface adventure insurance great:
Much lower cost than other options.
Provides primary health insurance.
Includes six customizing options.
Battleface is known for its adventure sports travel insurance, which makes it much more compelling than other products. Even at less than half the cost for other options, Battleface is providing you $100,000 in primary health insurance, $500,000 for medical evacuation and even coverage for pre-existing conditions.
Although its basic plan lacks features like lost luggage reimbursement, you’ll still get standard trip protections such as trip cancellation and employment layoff coverage. The extremely low cost may make this an enticing option for backpacker travel insurance or anyone wishing to save money on their travels.
Travelex
What makes Travelex great:
Strong travel protections.
$50,000 in primary medical insurance.
Coverage for medical quarantine included.
“Travelex’s primary goal is to provide travel insurance protection personalized to the type of trip you’re taking and the style of traveler you are. And regardless of which plan you choose, you’ll always have 24/7 access to travel assistance.”
Tin Leg
What makes Tin Leg great:
Coverage for activities such as bungee jumping and skydiving.
No medical deductible.
Strong trip protections.
“The Adventure Plan … features primary medical coverage and work-related cancellations, plus more lost luggage insurance than the Luxury plan, coverage for accidental death and dismemberment during the trip (excluding flights) and extra coverage for delayed sports equipment. It’s also the only plan that offers medical coverage for adventure activities like mountain biking.”
IMG
What makes IMG great:
Up to $300 in reimbursed kennel fees for delays in returning home.
Comprehensive trip protections, including trip delay and trip interruption reimbursement.
Lower-than-average cost.
“Some policies provide emergency medical evacuation coverage, while others skip this benefit entirely. This benefit may be more important if you travel to a remote location or engage in physical activity such as trekking.
“More comprehensive plans may include other benefits such as assistance with acquiring a new passport, reimbursing reward mile redeposit fees or coverage for pre-existing conditions. If these are something you’re interested in, be sure to check that your policy includes these options.”
John Hancock
What makes John Hancock great:
Trip delay reimbursement after three hours.
No medical deductible.
$750 reimbursement for missed connections.
“The Gold plan provides the greatest benefits, including a much higher limit for emergency medical and lost baggage reimbursement. Other than that, however, the Silver level is fairly similar, enjoying the same 150% reimbursement rate for trip interruption and a three-hour window for trip delay to kick in.
“The Bronze level is the least expensive, but it’s not all that far off from the cost of the Silver level. At this rate, you’ll be looking at far less coverage for emergency medical and trip delay, though you’ll still have $200 in coverage for change fees and 100% of costs incurred for trip cancellation.”
HTH Travel Insurance
What makes HTH Travel Insurance great:
$500,000 in primary medical coverage.
$1 million in medical evacuation.
High-limit travel protections.
“HTH offers several types of travel medical insurance, as well as trip protection plans that include coverage for trip cancellation or interruption, baggage delays, and accident or sickness. … The cheapest plan … included 100% of the trip cost in case of cancellation, up to 150% of the trip cost in case of trip interruption and a variety of other benefits, including medical insurance coverage.”
What does travel insurance cover?
You’ll find a wide variety of coverage types offered by travel insurance policies. This is true whether you’re purchasing a single-trip or annual travel insurance plan.
Common types of travel insurance
How to choose the best adventure travel insurance policy
Travel insurance can be good to have while you’re away from home and can provide coverage when your plans go awry. Standard plans will generally include coverage for trip interruption, lost luggage and emergency medical situations.
However, they also usually include a provision excluding adventure sports from their policies, so it’s important to read over your plan documents thoroughly. Companies like SquareMouth also allow you to filter travel insurance plans by the types of activities you’re doing, which may make it simpler to find one that fits your needs.
If you want to buy adventure sports travel insurance
Participating in adventure sports or extreme activities can be thrilling but also riskier than the average traveler’s trip. Because of this, if you’re interested in purchasing travel insurance, you’ll want to be sure it provides coverage for your planned activities — whether you’re camping or cliff diving.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
An accidental death benefit rider is a life insurance policy add-on that pays out an extra sum of money if you die in an accident. Many policies also pay the additional benefit if you die from injuries within a specified period after the accident, such as 90 or 180 days.
The higher payout death benefit is also known as “double indemnity” or “triple indemnity.” This is because it may be double or triple the amount of money your beneficiaries would get if you died of natural causes.
Accidental death benefit riders are a common option for most types of life insurance, including term and permanent life policies. They’re slightly different from accidental death and dismemberment (AD&D) riders, which offer a payout if you survive an accident or lose a limb or experience another debilitating injury, like blindness or paralysis as a result.
Accidental death benefit riders: The fine print
Examples of accidents that may be covered by an accidental death or AD&D rider include car crashes, fires, workplace accidents, falls and accidents involving firearms. The accidents that are excluded vary by insurer. Many policies won’t pay out the additional benefit if you had an accident while participating in dangerous recreational activities or under the influence of drugs or alcohol. Some insurers might not offer you the rider if you work in a risky occupation, like firefighting or law enforcement.
With some insurers, you can purchase stand-alone accidental death insurance instead of adding the rider to a life insurance policy. This coverage only pays out if you die in an accident. It’s most common among people who don’t qualify for traditional life insurance but still want their beneficiaries to receive some money if they die unexpectedly.
🤓Nerdy Tip
Fewer than 7% of deaths in the U.S. occur due to unintentional injury, according to the Centers for Disease Control and Prevention. Given that it’s far likelier you’ll die of natural causes instead of an accident, it’s important to make sure your policy’s regular payout provides enough coverage for your loved ones.
While Minnesota life did not make the Good Financial Cents® top 10 life insurance companies it did get an honorable mention and we have had great success working with this company.
Table of Contents
The History of Minnesota Life Insurance Company
Since 1880, Securian Financial Group has been the holding company and parent of Minnesota Life Insurance Company and Securian Life – as well as their affiliates. This financial powerhouse specializes in working with employers to offer financial, retirement, and insurance plans to their employees.
And, for more than 80 years, Minnesota Life Insurance Company has provided businesses with customized solutions to their employee benefit needs, as well as with expertise in administering large public and private employer plans to small and medium sized municipal employers. This insurer also offers individual insurance options.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-medrectangle-3-0-asloadedmax-width:300px!important;max-height:250px!important
This insurance company insures more state plans than any other group insurer. It also counts 20 percent of the Fortune 100 companies as its clients. Also, it is proud to offer industry leading technology, such as the first mobile optimized website for group insurance transactions.
Minnesota Life Insurance Company Review
The unique brand of service that is provided by Minnesota Life Insurance Company has established the company as a valued partner and a premier provider in the group insurance coverage arena. Just some of the quality and exceptional service that Minnesota Life Insurance is known for includes the following:
100 percent of the insurer’s new clients recommend its implementation services;
The company pays out 99 percent of death claims within ten calendar days of receiving proof;
The insurer offers technological solutions to ease its policyholders’ administrative load;
The average tenure of the company’s staff is 12 years.
Its parent company, Securian, is also considered to be strong and stable. Securian has nearly 15 million customers, and more than 5,000 associates and representatives in its headquarters in St. Paul, Minnesota, as well as in sales offices around the country. Also, the company has more than $1 trillion of insurance in force, and in just the year 2014 alone, it paid out more than $4 billion in benefits to its customers.
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The Financial Strength and Ratings of Minnesota Life
The parent company of Minnesota Life Insurance Company, Securian, has been provided with extremely high ratings from the insurer ratings agencies. These include:
A+ (Superior) from A.M. Best. This is the 2nd highest of a possible 16 total ratings.
AA (Very Strong) from Fitch. This is the 3rd highest of a possible 19 total ratings.
Aa3 (Excellent) from Moody’s Investors Service. This is the 4th highest of a possible 21 total ratings.
A+ (Strong) from Standard & Poor’s. This is the 5th highest of a possible 23 total ratings.
Life Insurance Products Offered
Minnesota Life Insurance Company offers both term and cash value life insurance policies. Life insurance policies are individual and group in nature.
For the group plans that are offered, regardless of whether these are offered as basic or as voluntary plans, group life insurance products are considered to be the mainstay of most employee benefits programs – and Minnesota Life Insurance Company provides them all.
Group life insurance products that are offered through Minnesota Life include the following:@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Group Term Life Insurance Coverage – Group term life insurance coverage offers life insurance protection for a set period of time. This type of life insurance will pay out a benefit only if the insured passes away during the term that the coverage is in force. With term life insurance, there is no cash value build up.
Group Universal Life Insurance Coverage – A group universal life insurance plan will combine the protection of life insurance coverage along with the option to build up savings with cash value. This cash value account will earn a fixed rate of interest.
Variable Group Universal Life Insurance Coverage – A variable group universal life insurance plan will offer a death benefit, and will provide the option to invest in a variety of different investments, and will also make allocations to a guaranteed account. With a variable group universal life insurance policy, the investment “sub-accounts,” there can be some both potential risks and rates of return so that employees may “customize” their investments to meet their specific financial goals. These investments can fluctuate, and when they are redeemed, they may be worth more or less than the amount that was initially invested by the employee. These plans may be designed to include a guaranteed account that offers a fixed rate of return that is guaranteed never to fall below three percent. The guarantees for the guaranteed account are based only on the financial strength and claims-paying ability of Minnesota Life Insurance Company, which are important. However, this has no bearing on the performance of the individual investment options.
Accidental Death and Dismemberment Insurance – Accidental death and dismemberment, or AD&D, coverage provides a benefit if the insured attains bodily injuries that result in death or dismemberment as a result of an accident.
Business Travel Accident Insurance – Business Travel Accident, or BTA, insurance will provide a lump sum benefit if the insured dies or is injured due to a covered accident while he or she is traveling for business.
Critical Illness insurance – If an insured is diagnosed with a condition that is covered in a critical illness insurance policy, then the lump sum benefit may be used in any way that the insured chooses. These may include making mortgage payments, paying for child care, or paying for any out-of-pocket medical costs.
Accident insurance – The accident insurance that is provided by Minnesota Life Insurance Company will offer a payout to use in any way that the insured wishes that can cover deductibles, out-of-pocket medical expenses, or even everyday living expenses.
Other Coverage Products Offered by Minnesota Life Insurance Company
In addition to term and permanent life insurance coverage, and the accidental death and dismemberment (AD&D) insurance protection, accident insurance, and critical illness insurance to both large employers and to executive groups across the nation, this insurer also partners with Zurich International Life in order to provide group life insurance coverage for global employees.
Individual annuities are also offered by Minnesota Life Insurance Company. These can help individuals to ensure that they will have an income for the remainder of their lives, by paying out a guaranteed income stream on a regular basis, regardless of how long the person lives. Also, retirement plans are also offered through Minnesota Life Insurance Company.
They have an IncomeToday! Annuity, which is an immediate income annuity (as you can probably guess from the name). With these annuities, you pay one lump sum and then you’ll start receiving paychecks immediately. If you’re getting close to retirement, you might be worried about having enough money, but that’s where these annuities come in.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Aside from the immediate paycheck, there are several other annuity options that you can choose. One popular is a fixed indexed deferred annuity. These are annuities that are based on the performance of the markets. That means that these annuities are going to give you guaranteed income, but there is a chance that they could earn you much more.
Another type of annuity that you can choose to supplement your retirement income is variable deferred annuities. When you invest in a variable deferred annuity, there are several options for investing your money. The investment options of the annuity can reflect your risk tolerance and you can change the investments as you get closer to retirement.
Through the parent company of Minnesota Life Insurance Company, Securian, there are many additional insurance and financial products that are offered, too. These include retirement plans, investments, and executive benefits. Because employers are this company’s key market, Securian works with groups in identifying the right plan types for their needs – from profit sharing and 401(k)s to defined benefit and cash balance plans.
The 401(k) plan design options are based primarily on employer goals, as well as the budget and demographics of the particular employer. Investment options can be selected from more than 5,800 unique investment options, and investment allocation portfolios are based on age or risk tolerance. Profit sharing and matching contribution components are also available.
While few employers offer defined benefit plans today, Securian helps companies to differentiate themselves and offer their employees the security of knowing that they’ll have an income for life with a pension income. Regardless of how the investments in the plan perform, the participants in this type of plan will be able to still receive a set amount of retirement income.
Cash balance plans are also available through Securian. These types of plans can help an employer to essentially bridge the gap between a traditional defined benefit plan and a defined contribution plan such as a 401(k). The qualified plan products that are offered by Securian are done so via a group variable annuity contract that is issued by Minnesota Life Insurance Company. While the company (Securian) works with employers of all sizes, it specializes in plans that have assets up to approximately $200 million.
The 5 Star Life Insurance Company has been in the business if providing their customers with quality life insurance coverage since 1996. The company is an enterprise of the Armed Forces Benefit Association (AFBA), and it is headquartered in Alexandria, Virginia.
Its parent company, AFBA, was initially founded in 1947, with the assistance of Army General, Dwight D. Eisenhower. This company was established to help with easing the strain on military members, as well as their families, during times of war. At that time, members of the U.S. military were not allowed to buy life insurance that would pay out the death benefit proceeds if the member was killed in a war zone.
AFBA had its initial headquarters in the basement of the Pentagon building in Washington, DC, and for the next 70 years, the company served the Armed Forces during times of both war and peace. The motto of AFBA is, “Serving those who serve this great nation.”
The Armed Forces Benefit Association is still considered to be a growing company. This insurer provides supplemental and voluntary life insurance coverage to the work site/group markets. It also offers individual life insurance via the senior market.
5 Star Life Insurance Company Review
Being a related enterprise of AFBA, 5 Star Life Insurance Company has its main offices in Virginia (although it is considered to be domiciled in Baton Rouge, Louisiana. Today, this company has approximately $41 billion of insurance in force, and it insures more than 800,000 lives.
Based on the 2016 Independent Comparative Report, the company is considered to be strong and stable financially, and it exceeds life insurance industry averages regarding its liquidity ratio, net premiums to capital, capital and surplus to liabilities, and percent of investment portfolio investment grade.
The 5 Star Life Insurance Company has a key focus on providing life insurance coverage. It does so via independent brokers and producers. This coverage can be customized to fit the needs of its policyholders.
Life Insurance Products Offered By 5 Star Life Insurance Company
The 5 Star Life Insurance Company has a focus on offering its products in two specific markets. These include offering term life insurance coverage to employer groups. This coverage can help with providing financial protection to employees’ families.
The company also has a key focus on providing simplified issue whole life insurance in the senior market. This coverage can help with covering the insured’s funeral and other final expenses. It is also good for people who are in poor health or who may be looking for a smokers life insurance policy without the higher rates.
Work Site Insurance Coverage Offered Via 5 Star Life Insurance Company
The company offers a specific suite of coverage for the worksite market. These products offer competitive premium rates, and they are primarily geared toward small and mid-sized employers. All of these products are sold through an employer or an association.
The primary product that is offered is the Basic Life and AD&D (accidental death and dismemberment). Adding these products can help employees to enhance the group life insurance that they already have. It does so by offering additional benefits, along with coverage for a spouse and/or children.
Some of the highlights of these worksite basic life and AD&D include the fact that the coverage is guaranteed issue. This means that if at least ten employees apply, then an individual cannot be turned down for the coverage – even if he or she has an adverse health condition.
The coverage also offers an emergency death benefit payment. This means that up to $15,000 will be mailed out to the policy’s beneficiary within one business day of notification to help loved ones with immediate expenses.
This particular coverage is portable, meaning that even if the employee or member leaves the group, the coverage can continue – without the individual having to provide evidence of insurability (provided that the premium continues to be paid).
There are some nice advantages for employees or members who apply for this worksite/voluntary coverage.
Including the following:
There are dedicated case managers at 5 Star Life Insurance Company who will work with insureds and their beneficiaries. This can make the process of coverage and claims easier for people, as there is just one specific point of contact for all of their questions or concerns.
The billing is also easy when it comes to the payment of the premium. There are up to 15 different premium modes that are available, which include direct billing for ported policies.
For the employer or association that is offering this coverage, the company offers tailored reporting and billing reconciliation that can conveniently fit the employer’s needs.
Individuals are also allowed to enroll and to pay their premiums online.
Final Expense Life Insurance Products Offered By 5 Star Life Insurance Company
The company also offers final expense life insurance. These policies are geared towards paying for funeral and other final expenses – and the coverage can be extremely helpful for a person’s loved ones.
Today, the cost of a funeral can exceed $10,000 in some areas. This is especially the case when adding in items such as a burial plot, a headstone, flowers, transportation, and other related costs. In many cases, a person may also not have medical expenses that are not covered by his or her regular health insurance policy. So, a final expense life insurance policy can also help loved ones to pay off these bills.
The 5 Star Life Insurance Company offers several plans under the name of Silver Premier Choice. These are focused on insureds who are typically between the ages of 50 and 85 years old.
Some of the key highlights of these plans include:
Death benefit protection of between $5,000 and $25,000. The amount of the coverage on these plans is guaranteed never to go down – even in light of the insured’s increasing age and / or if they contract an adverse health issue.
The premiums on these plans are also quite affordable. The premium is also guaranteed never to increase, regardless of the insured’s age and / or health condition going forward.
As long as the premium is paid on these policies, the insurance company cannot cancel the coverage for any reason.
The Silver Premier Choice plans are whole life in nature. This means that they will not only provide death benefit coverage, but they will also build up cash value. The cash is allowed to grow on a tax-deferred basis. This means that there is no tax due on the gain that takes place inside of the policy unless or until the funds are withdrawn.
There is no medical examination required to qualify for these plans. In fact, many people who apply for this coverage can be approved directly over the phone. And, once they are approved, the coverage will begin on that day.
Coverage can last up to a person’s age 121.
As with the worksite life insurance plans, these policies also offer an emergency death benefit. This can help to provide funds quickly to loved ones when they need it for final expense and other related costs.
There are two final expense plans that are offered by 5 Star Life Insurance Company. These include the Preferred and the Graded. With the graded plan, the death benefit will not all be paid out at the time of the insured’s passing, if they have only owned the policy for a short time.
As an example, if the insured dies in Year 1, then 30% of the selected death benefit will be paid to the policy’s beneficiary. If the insured dies in Year 2, then 70% of the death benefit will be paid. Once they reach Year 3 – and any time after that – then 100% of the selected death benefit will be paid out when the insured passes away.
There are also several different riders that may be added to the life insurance products offered by 5 Start Life Insurance Company.
Including:
Terminal Illness Rider – This plan will pay out 30% (in most states) of the death benefit in a lump sum if the insured is diagnosed with a covered terminal illness and is given a limited life span of fewer than 12 months.
TI Air Rider – This is an automatic coverage increase rider that can be purchased for as low as an additional $1 per week by the policyholder.
Quality of Life Rider – This rider will accelerate a portion of the death benefit on a monthly basis – 3% or 4% – each month if the insured is faced with a chronic medical condition that requires continuous care. The insured can receive up to 75% of the death benefit in total.
Waiver of Premium Rider – If the insured is totally disabled due to sickness or accident, then after a six-month waiting period, the policy’s premiums will be waived.
Critical Illness Rider This rider will pay out 30% of the policy’s coverage in the event that the insured has a heart attack, life-threatening cancer, stroke or other specific diagnoses.
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement. Learn more in our Ladder review.
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement.
In this Ladder review, I’ll let you know what types of policies they offer, key features, who is eligible, and how much you can expect to pay.
Easy to use online applications
No medical exams for up to $3M in coverage; just answer some health-related questions
Adjustable coverage
Table of Contents
Introducing Ladder Insurance
Ladder is a California-based online life insurance provider offering coverage through established life insurance companies. Founded in 2015 and launched in 2017, Ladder’s insurance partners include Allianz Life Insurance Company of New York, Fidelity Security Life Insurance Company®, and its affiliate, Ladder Life Insurance Company.
While the entire application process is online, you can get help from licensed insurance professionals, if needed, who are happy to help.
How Ladder Term Life Insurance Works
Ladder only offers term life insurance policies. Ladder’s mission is to offer affordable policies with speed and ease. Term life insurance best fits that product type.
When applying with Ladder, you should be aware the company does not offer policy riders. These optional additional coverage provisions provide more benefits but at a higher premium. That higher premium is the reason why Ladder doesn’t offer them.
Ladder’s most unique feature is that it allows you to increase or decrease your coverage as needed.
Laddering Up/Laddering Down
The name Ladder hints at its most unique feature – the ability to increase or decrease your coverage as needed. The process is known as ‘laddering up’ or ‘laddering down.’ Existing policyholders can increase their death benefit amount as their needs change, subject to underwriting and approval.
Conversely, if your coverage needs decline, you can reduce the death benefit. In short, Ladder Life puts you in charge of the policy’s face amount and the premium you’ll pay. You can request a change to your coverage by visiting the Ladder account page.
Laddering your policy, up or down, is completely free. And you can ladder your policy as often as you like. Naturally, the premium will increase if you ladder up the policy amount. And if you ladder down the death benefit, the premium will decrease.
Term Length Options
Ladder offers terms ranging from 10 to 30 years, the maximum term you can qualify for, regardless of age. That said, your age at the time of application may reduce the maximum term for which you qualify. The maximum issue age is 60.
Ladder uses a simple calculation to determine the maximum term length of a policy. Your current age, plus the term length, cannot exceed 70. For example, if you’re 40, the longest term is 30 years (40+30 = 70.) If you’re 50, the longest term is 20 years (50+20 = 70.)
Ladder policies are underwritten based on your nearest birthday. For example, if you will be 45 in four months, your age will be considered 45 years, not 44.
Policies are renewable for up to 5 years after the guaranteed level premium term. The new premium will be based on your age at renewal and, therefore, higher, but this is how term life insurance renewals work.
Ladder Pricing
Like all life insurance policies, Ladder policy premiums depend on a combination of factors. Those include your age at the time of application, health condition, occupation, hobbies and pastimes, and even geographic location.
We requested information for a non-smoking 40-year-old male in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $37.50 per month
15 years – $47.70 per month
20 years – $61.80 per month
25 years – $96.90 per month
30 years – $114.30 per month
We then requested a policy for a non-smoking 40-year-old female in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $35.40 per month
15 years – $46.80 per month
20 years – $52.50 per month
25 years – $77.10 per month
30 years – $88.50 per month
The monthly premiums for men are slightly higher than for women, which is common throughout the life insurance industry. This owes to the fact that women statistically live longer than men by several years.
The premium rate increases with the term of the policy because the longer the term, the greater the likelihood the company will ultimately pay the death benefit.
Ladder Maximum Coverage Limits
Ladder coverage limits range from a minimum of $100,000 to a maximum of $8 million (up to $3 million in CA). If you apply for $3 million or less, you won’t have to take a medical exam, just answer health questions. Applicants applying for benefits greater than $3 million may need to submit to a medical exam.
Policies offered through Ladder have a single death benefit payout, which is paid in a lump sum to the beneficiaries upon the death of the insured. Unlike some life insurance companies, there is no option to distribute benefits in installments or through any other payout method.
As mentioned, Ladder does not offer common life insurance riders, so you won’t have the ability to add provisions, such as a spousal rider, an accelerated death benefit (living benefits), double indemnity (increased death benefit for death caused by an accident), or a conversion provision that enables you to convert the term policy to a permanent, whole life policy before the term expires.
Ladder Coverage Eligibility
Ladder offers coverage for those between the ages of 20 and 60. If you are over 60, you’ll need to make an application elsewhere. Each application is for a single individual, so there is no capability to apply jointly with your spouse or to add your children. Each person will need to complete a separate application.
Policies are available only to US citizens and lawful permanent resident aliens who have lived in the US for at least two years. Ladder offers policies in all 50 states, as well as the District of Columbia.
Ladder Application Process
The application process takes place online, which helps Ladder keep premiums low.
You can apply for coverage in as little as 5 minutes. You will not be required to complete a medical exam for coverage up to $3 million.
But for coverage above $3 million, the approval decision may be delayed several weeks.
Ladder Underwriting
When completing the application, Ladder will request basic information, like your name and email address. In making the underwriting decision, they’ll also request the following information:
Your height and weight
The last time you used tobacco or nicotine products
Your date of birth
Whether a biological parent or sibling has been diagnosed by a physician with diabetes, cancer, heart disease, Huntington’s Disease, or Lynch Syndrome before the age of 60?
Your annual household income
How many children you have
Your remaining mortgage balance
Your answers to these and other questions will determine your eligibility for life insurance coverage, as well as the premium you’ll pay for the policy.
Is Ladder Legit?
Ladder Life is a legitimate term life insurance services provider, offering policies in all 50 US states. The following information indicates its financial strength and how it’s perceived within the insurance industry and by its customers.
Financial Strength
Since Ladder is not the direct issuer of the policies they offer, the company is not rated for financial strength by A.M. Best, the industry’s most well-recognized insurance company rating agency.
But the ratings for two of Ladder’s issuing companies are as follows:
Allianz Life Insurance Company of New York, A+ (Superior)*
Fidelity Security Life Insurance Company, A (Excellent)*
Since each of the companies is rated “A” or higher by A.M. Best, each is highly likely to have the financial strength to pay the policy death benefit, if necessary.
Ladder’s third issuing company is its affiliate, Ladder Life Insurance Company. Ladder Life Insurance Company has earned a Financial Stability Rating® (FSR) of A (Exceptional) from Demotech, Inc. FSRs are a leading indicator of financial stability, providing an objective baseline of future solvency. The most current FSRs must be verified by visiting www.demotech.com
Third-Party Ratings
In addition to financial strength ratings by A.M. Best, we’ve also considered the credit rating of each of the three providers behind Ladder. The credit rating indicates the company’s ability to meet its financial obligations and continue operations as a going concern.
The news here is as good as it is with the financial strength ratings. The table below shows the credit ratings of two of the companies from two major corporate credit evaluation agencies:
Insurance Company / Rating Service
Moody’s
Standard & Poor’s
Allianz Life Insurance Company of New York
A1 (5th of 21 ratings)
AA (3rd of 21 ratings)
Fidelity Security Life Insurance Company®
N/A
N/A
Customer Service Ratings
Perhaps the best indicator of Ladder’s reputation as a life insurance services provider is to look at the ratings provided by the people who deal most closely with Ladder – its customers. Ladder has an Excellent Trustpilot score of 4.8/5, based on almost 2400 customer reviews. 89% of customers have assigned them a 5-star rating, and only 5 % rated them three stars or fewer.
We could not locate a rating for Ladder with the Better Business Bureau. However, the BBB has an “A+” (highest) rating for Fidelity Security Life Insurance Company® and has been agency accredited since 1990. There is, however, no BBB rating for Allianz Life Insurance Company of New York, perhaps because the company is an affiliated organization.
How We Evaluated Ladder Life Insurance
We’ve evaluated Ladder based on the policy terms offered, the dollar amount of the death benefits, and the premiums’ cost. We’ve also taken into account applicant eligibility, as well as the apparent underwriting criteria the company uses.
We’ve also considered third-party information about the company, including its financial strength and reputation. Finally, we considered factors that make Ladder Life unique regarding what niche they fill in the insurance industry.
Ladder Pros and Cons
There’s a lot to like about Ladder, but it does lack some key features people look for when shopping for life insurance. Whether or not that matters to you will depend on what you want in a life insurance policy. Here’s our list of Ladder’s pros and cons.
Pros
Affordable term life insurance
Complete your entire application online
Good chance of no medical exam (if you’re in good health)
High maximum coverage of $8MM
Ladder up or down to change your existing insurance coverage
Excellent Trustpilot rating from Ladder Life customers
Cons
Is Ladder a Good Company?
Ladder is one of the best online life insurance companies for term insurance. While they don’t offer as many coverage options as other providers (term life only, no riders), they provide straightforward term coverage that’s affordable and easy to apply for. You can complete the entire process online, and if you’re in good health, you likely won’t require a medical exam.
Ladder partners with top-notch insurance companies and can boast very high customer ratings. And their Ladder Up/Down features only add to Ladder’s convenience.
Of course, if you fall outside Ladder’s qualifying criteria, i.e., over 60, want universal or whole life insurance, or require specialized coverage via insurance riders, then Ladder is not for you.
The bottom line is if you meet Ladder’s age requirements and are of good health, it’s one of the best places to get term life insurance – which is what the vast majority of American adults need.
FAQs on Ladder Life Insurance
Is Ladder a real life insurance company?
Ladder is a “real” life insurance company that provides online term life insurance. It was founded in 2015 and is headquartered in San Francisco, California. The company offers a range of term life insurance products that can be customized to meet the specific needs of individual customers.
Ladder’s insurance policies are underwritten by companies including Fidelity Security Life Insurance Company® and Allianz Life Insurance Company of New York, both of which are leading life insurance companies. Ladder’s website allows customers to easily apply for and purchase life insurance online, and the company also offers support through its customer service team.
Does Ladder pay out on their insurance policies?
Yes, life insurance policies sold through Ladder pay out in the event of the policyholder’s death, as long as the policy is in effect and the death is covered under the terms of the policy. Life insurance policies are designed to provide financial protection for the policyholder’s loved ones in the event of the policyholder’s death.
Is buying life insurance online safe?
Buying life insurance online can be safe as long as you take certain precautions. Here are some tips to help you ensure that your online life insurance purchase is safe:
1. Do your research: Make sure you understand the different types of life insurance policies available and what each one covers. This will help you make an informed decision about which policy is right for you.
2. Compare quotes: It’s a good idea to compare quotes from multiple insurance companies before you make a purchase. This will help you find the best rate for the coverage you need.
3. Check the company’s reputation: Do some research on the insurance company you are considering purchasing from. Look for reviews and ratings from independent sources, such as the Better Business Bureau.
4. Understand the policy terms: Make sure you fully understand the policy terms before making a purchase. Pay attention to details such as the policy’s length, coverage amount, and any exclusions or limitations.
5. Protect your personal information: Be careful when providing personal information online, especially when it comes to financial information. Make sure the website you use is secure, and protect your personal information by using a strong password and avoiding sharing it with others.
How much life insurance do I need?
Here’s what you need to know on determining how much life insurance you need include:
Your financial obligations: Consider the financial obligations you have, such as a mortgage, car loans, credit card debt, and other expenses. You’ll want enough life insurance to cover these obligations in the event of your death.
Your income: If you have dependents, you may want to have enough life insurance to replace your income in the event of your death. This can help your loved ones maintain their standard of living.
Your assets: If you have significant assets, such as a business or property, you want to have enough life insurance to cover the value of these assets in the event of your death.
Your future financial goals: Consider your future financial goals, such as paying for your children’s education or saving for retirement. You want to have enough life insurance to help your loved ones achieve these goals even if you are not there to contribute.
Product Description: Ladder is a life insurance services provider that offers term life insurance policies to consumers. It was founded in 2015 and is headquartered in Palo Alto, CA.
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Summary
Ladder offers term life insurance coverage of between $100K to $8M with no medical exams for coverage up to $3M (just answer health-related questions). Adjust coverage anytime.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
4.3
Pros
Offers adjustable term life insurance ranging from 10 to 30 years in 5-year increments.
The company has a user-friendly website and offers a range of online tools and resources to help consumers understand and compare different life insurance options.
Offers no medical exam coverage up to $3M, which may be a good option for individuals who are unable or unwilling to undergo a medical exam as part of the application process.
Cons
No-exam life insurance policies are typically more expensive than traditional life insurance policies
May not be the best option for individuals with pre-existing health conditions or other risk factors
Do not offer riders on their insurance policies such as: Accidental death and dismemberment (AD&D) rider, waiver of premium rider, or return of premium rider.
*Allianz Life Insurance Company of New York has been rated A+ (Superior) affirmed October 2021 and Fidelity Security Life Insurance Company® has been rated A (Excellent) based on an analysis of financial position and operating performance, by A.M. Best Company, an independent analyst of the insurance industry. For the latest rating, accesswww.ambest.com.
Ladder Insurance Services, LLC (CA license # 0K22568; AR license # 3000140372) offers term life insurance policies: (i) in California, on behalf of its affiliate, Ladder Life Insurance Company, Menlo Park, CA (policy form # P-LL100CA); (ii) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (iii) Fidelity Security Life Insurance Company®, Kansas City, MO (policy form # ICC17-M-1069, M-1069 and policy # TL-146) in the District of Columbia and all states except New York and California. Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOPT0523010
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Assurity Life Insurance Company has been in the business of offering coverage and protection to its policyholders for well over 100 years. This company’s heritage dates back to the year 1890..medrectangle-3-multi-638border:none!important;display:block!important;float:none!important;line-height:0;margin-bottom:15px!important;margin-left:auto!important;margin-right:auto!important;margin-top:15px!important;max-width:100%!important;min-height:250px;min-width:250px;padding:0;text-align:center!important
Throughout the years, the company has grown and expanded.
According to a recent Gallup Poll, Assurity Life Insurance Company has also been ranked in the 91% of all life insurance companies in the Gallup survey when it comes to employee engagement.
Assurity Life Insurance Company Review
Assurity Life Insurance Company has a strong set of financials. As of year-end 2015, the company had nearly $348 million in surplus – which is $17 million more than what the company had for the year 2014. It also had approximately $2.5 billion in total assets.
For this same time frame, the company had more than $190 million in insurance premiums and deposits, as well as more than $38 million in operating income. In addition, as of the end of the year 2015, Assurity Life Insurance Company had paid out nearly $196 million in benefits to its policyholders.
The company also declared nearly $17.5 million in policyholder dividends. While dividends are not guaranteed, they can be a nice benefit for policyholders, as they can be taken in the form of cash or alternatively, they may be used for purchasing additional amounts of insurance, or for adding to the cash value of a permanent life insurance policy. This can help the cash in the cash value component of a permanent life insurance policy to grow and expand even further – without being taxed at the time of receipt.
Today, Assurity Life Insurance Company is well known in the insurance industry for being socially responsible to its employees, the community, and the environment overall.
Assurity is also known for being involved in the communities that it serves. This includes assisting people through difficult times – by not just serving the company’s customers, but also via meaningful commitment to strengthening the community overall. The associates of Assurity Life Insurance Company spend countless hours helping and serving, as well as volunteering. Just some of the events that are taken on include blood drives, collections for the Food Bank, Habitat for Humanity, the holiday giving tree, the Special Olympics, and Junior Achievement.
In addition, the company is also known for being high-tech – which includes combining the most sophisticated equipment and processes with the flexibility to anticipate future advances in technology. This includes ensuring the ultimate safety of the company’s customer information.
Ratings and Better Business Bureau Grade
A.M. Best Rating: A- (Excellent)
BBB Rating: A+
Life Insurance Offered Via Assurity Life Insurance Company
Assurity Life Insurance Company offers a variety of different life insurance options. This can help policyholders to better customize their life insurance coverage to meet their specific needs.
Life Insurance Options Available
Term Life Insurance
Whole Life Insurance
Universal Life Insurance
Term life insurance provides pure, death benefit protection only. In fact, term life is considered to be the most basic form of life insurance that is available in the marketplace. Making the premium that is charged for term life insurance can oftentimes be very affordable – even for a large amount of death benefit – if a person is young and in good health at the time that they apply for the coverage.
With term life insurance, a policy is purchased for a certain period of time, such as ten, fifteen, twenty, twenty-five, or even thirty years. In many cases, the amount of the premium will remain level throughout the term of coverage.
A term life insurance policy can be a good solution for someone who is seeking to cover “temporary ” needs, like the payoff of a mortgage balance, or the funding of a child’s or a grandchild’s college education. This type of coverage can also provide the protection that may be needed during various events in one’s life, whether it be marriage, buying a new home or business, and/or the birth or adoption of a child.
Whole life insurance is a type of permanent life insurance protection. This type of life insurance is intended to last for the entire lifetime of the insured. It offers a guaranteed death benefit and a cash value component where the funds grow at a tax-deferred basis. Meaning no tax will be due on the growth of the funds unless they are withdrawn.
This cash may be withdrawn by the policyholder for any purpose. While the cash does not have to be paid back, it is important to know that the amount of unpaid cash balance at the time of the insured death is counted against any amount that will be paid out to the named beneficiary.
Another type of permanent life insurance is universal life. This form of life insurance also has a death benefit and a cash value portion. However, universal life is considered to be somewhat more flexible than a whole life insurance plan, since the policyholder can decide how much of the premium will go towards the death benefit and how much toward the cash value. Also, the policyholder may be allowed to change the due date of the premium.
Other Products Offered Through Assurity Life Insurance Company
In addition to life insurance protection, Assurity Life Insurance Company also offers a number of other coverage products, including:
Disability Income – With a disability income policy, you can obtain a monthly income if you are sick or injured and you are unable to work. Having a disability income plan can help you to better ensure that your living expenses can be paid – without you having to dip into your savings, retirement plan, or other financial assets.
Critical Illness Insurance – When you have a critical illness insurance policy, if you are diagnosed with a covered serious illness, you will be able to obtain a lump sum payment. These funds can be used for paying your medical expenses, or any other need that you see fit.
Accidental Death and Dismemberment (AD&D) Coverage – AD&D coverage will provide a cash benefit if a loss of covered life is caused by an accident, as versus by illness or other types of natural causes. The premiums on the Assurity Life Insurance Company AD&D coverage are guaranteed – and the benefit will be paid out, regardless of what other types of insurance you may hold.
Retirement Annuities – Today, due in large part to longer life expectancy, many people are worried about outliving their income in retirement. But, by having an annuity, income can be paid out for the remainder of your lifetime – regardless of how long that may be. With a deferred annuity, the funds that are accumulated are allowed to grow on a tax-deferred basis. This means that there will be no tax due on the growth of these funds until the time they are withdrawn.
Assurity Life Insurance Company offers a number of different plans that are available via the worksite. These could be offered as a part of an overall employee benefits plan. In many cases, the premium can be paid via paycheck withholding.
Life insurance can be an integral part of most any complete financial plan. The takings from life insurance coverage can be used in a wide variety of ways, such as for paying off debt, continuing to pay everyday expenses, ensuring that a child or grandchild has funds to attend college in the future, paying estate taxes, and/or ensuring that one’s funeral and other final expenses are taken care of.
When looking for the best life insurance policy, it is imperative to make sure that you have the right type and amount of coverage. That way, your survivors won’t need to worry about financial hardship at an already difficult time in their lives.
It is also essential to ensure that the life insurance carrier you are planning to purchase the coverage through is secure and stable from a fiscal standpoint and that it has a positive reputation for quickly paying out its policy holder claims. One insurance carrier that meets these criteria is The Hartford.
History of The Hartford Life Insurance Company
The Hartford has been in the business of providing life insurance coverage for more than two centuries. The company had its beginning back in the year 1810 when it was formed as a fire insurance carrier. The Hartford quickly differentiated itself from other insurance companies at that time, when in 1835, a fire destroyed New York’s fire insurance district and the leaders of the company pledged their fortunes to help with paying the claims.
Throughout the years, the company grew and expanded, adding some insurance products along the way. Hartford continues its path of excellence today. In addition to offering financial protection through insurance coverage, the company helps in the communities in which it serves and promotes volunteerism and charitable donations. The Hartford also became a founding partner in the U.S. Paralympics in 2003, and it has been named as one of the world’s most ethical companies nine times.
The Hartford Life Insurance Review
Today, The Hartford offers an extensive list of insurance and other financial products, which can help its clients to customize their wealth enhancement and protection essentially. The company has a key focus on property and casualty insurance, as well as mutual funds and group benefits. It also offers life insurance and retirement annuities.
In the year 2016, Hartford had a net written premium of more than $10.5 billion just in personal lines insurance. In fact, Hartford is a leading direct personal lines insurance carrier, with a 30+ year partnership with AARP. The insurer has a leading share in P&C small commercial, and it is rated as the number two provider of workers’ compensation insurance. The Hartford is also ranked as the number four insurer in the group disability market, and number seven position in group life insurance coverage.
Hartford Life is also a primary provider of group life insurance and in voluntary life insurance benefits. It serves more than one million small business customers with its coverage products. In 2016, the company had revenues of more than $18.3 billion. The Hartford is headquartered in Hartford, Connecticut.
Ratings and BBB Grade
Due to its strong financial position, The Hartford has high ratings from the insurer rating agencies. These include an:
A+ from A.M. Best Company
A+ from Standard & Poor’s
A1 from Moody’s Investor Services
Also, while The Hartford is not an accredited company through the Better Business Bureau (BBB), it has been given a rating of A- from the BBB, based on an overall grade scale of A+ to F. Over the past three years, The Hartford has closed out a total of 293 customer complaints – of which 13 were closed out over the past year.
Of these total 293 customer complaints, 202 had to do with problems with the company’s products and/or services, 71 were related to billing and/or collection issues, 12 were in relation to advertising and/or sales issues, 6 were delivery related, and the remaining 2 had to do with guarantee and/or warranty issues.
Life Insurance Policy Options Offered by The Hartford
The Hartford provides several options in terms of life insurance coverage. These come primarily by way of group life insurance coverage, as well as in voluntary life insurance plans that are offered through the employer-sponsored market.
Helping to protect employees against the unexpected is a key focus for many employers. Knowing that employees and their loved ones are covered financially can contribute to enhancing peace of mind, and in turn, employer productivity.
The Hartford offers industry leading group life insurance that includes features such as the following:
Enhanced Continuity of Coverage
Living Benefit Option
No Interruption in Premium Waiver Elimination Period
Portability and Conversion
In addition, there are also a variety of other programs that can provide employees with access to online tools and services that can help with guiding them through major life decisions, such as funeral planning and / or the creation of a will.
The Hartford also offers Accidental Death and Dismemberment Insurance (AD&D) in the group life insurance arena. Here, protection is available to employees, as well as for spouses and / or children against losses that can stem from unforeseen covered accidents.
With this plan, there is 24-hour accident coverage that can be combined with an employee’s group life insurance offering – or alternatively, it may be purchased by the employee as stand-alone coverage. There are also various riders available with this plan that can help to better customize the insurance to fit an employee’s individual needs.
The Hartford also offers a variety of voluntary life insurance options in the employer market. The coverage amounts of this life insurance can range from a flat dollar amount to multiples of the employee’s salary. There are also additional benefits offered, such as help with the preparing of a will, funeral planning, travel assistance, and more.
The term life insurance coverage that is provided via the Hartford’s voluntary benefits can include a living benefit option / accelerated death benefit, as well as accidental death and dismemberment (AD&D), and a disability waiver of premium. As with the group life insurance coverage, the voluntary life insurance benefits offered by the Hartford are both portable and convertible.
The coverage is also quite flexible, allowing employees in many cases to choose face amounts of between $25,000 to $250,000, as well as coverage for his or her spouse – up to 100 percent of the employee’s value.
With the voluntary benefit offering, there is also children’s coverage available. This coverage can range up to $15,000 in benefit. And, the coverage for all the insureds is typically guaranteed issue. This means that the individuals will be covered, regardless of their current health condition.
In addition to life insurance protection for employees, the Hartford provides value added services that can help an employee’s recovery in the event of an unexpected situation. Just some of these services include the following:
Counseling Beneficiaries – This service offers compassionate expertise that can help employees to cope with the financial, legal, and emotional issues that come from losing a loved one.
Funeral Planning and Concierge Services – These online tools can guide employees through a loss, such as help with planning a funeral.
Will Services – The Estate Guidance Will Services that is offered through The Hartford can help with protecting a future with an online will, which is backed by support from licensed attorneys.
Travel Assistance – With travel assistance, employees can get information to help them with feeling safe and secure.
ID Theft Protection and Assistance Services – Today, the fastest growing crime is identity theft. Once an identity has been stolen, it can wreak havoc on an individual and their family for many years to come. With ID theft protection services from The Hartford, employees will have access to educational materials that can help with preventing such a crime, as well as access to case workers who can assist with resolving issues that can arise from identity theft.
Other Products and Services Available
In addition to life insurance coverage, The Hartford offers many other products and services to its customers. These include the following:
Auto Insurance
The auto insurance that is available through The Hartford includes car / vehicle coverage, as well as coverage for classic vehicles, RVs (recreational vehicles), boats, golf cards, snow mobiles, and ATV (all-terrain vehicles).
Home Owners Insurance
The home owner’s insurance offered via Hartford includes coverage for one’s primary residence and investment property, along with renter’s insurance, condo insurance, flood insurance, and overall umbrella insurance coverage.
Business Insurance
The Hartford works with businesses to protect what is important to them. The company provides a wide variety of different business insurance protection options to choose from, depending on a company’s needs. These include:
Business owner’s policies
Workers’ compensation
Commercial auto insurance
Commercial property insurance
Data breach insurance
General liability
Home based business insurance
Employment practices liability
Personal Liability Insurance
How to Find the Best Life Insurance Premium Rates Through The Hartford
If you are seeking the best rates for life insurance coverage from The Hartford – or from any highly rated life insurance carrier , it is recommended that you compare policies and the prices of multiple plans with an independent insurance agent or broker – and from there, you can choose the option that will be right for you and your precise needs.
Letâs talk about all the awful things that could happen to you! Actually, maybe thatâs not the best idea, but you never know when something tragic could strike. This is what makes insurance plans so important. The problem is, shopping for insurance is overwhelming and stressful. There are a dozen different kinds of insurance and […]
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