The bottom line What is a linked benefit life policy? It is permanent life insurance paired with a long-term care benefit, so one contract can address a death benefit and eligible care expenses. The exact trigger, payout limit, premiums, and beneficiary benefit depend on the policy wording. A linked benefit life policy combines two planning … Read more

The bottom line How does the life insurance suicide clause work? New York's insurance department says a policy may exclude suicide within two years and refund premiums less dividends and debt instead of paying the face amount, but your contract and state control the result. A suicide clause is a policy provision that needs to … Read more

The bottom line How does the three year rule apply to an ilit transfer? If an insured transfers an existing life insurance policy and dies within three years, federal estate-tax law can bring the policy into the gross estate when the statute’s other conditions are met. A trust that applies for and owns a new … Read more

The bottom line The answer to “how does fully underwritten life insurance work” is a detailed review of your health and related risk information before an insurer decides whether to offer coverage and at what premium. The traditional path can involve an exam, lab work, and medical records, so timing varies by file. Fully underwritten … Read more

The bottom line What is a modified endowment contract? A modified endowment contract, or MEC, is a life insurance contract that fails the federal seven-pay test because premiums paid during the first seven contract years exceed the permitted level. The policy remains life insurance, but federal tax rules change how certain withdrawals and loans are … Read more

The bottom line What is the long term care elimination period? It is the number of days you must receive covered long term care services and pay privately before the policy pays benefits. Policies may count calendar days or service days, and shorter periods can cost more. Read the policy’s counting rule before choosing. An … Read more

The bottom line What is survivorship life insurance? It is a permanent policy that insures two people and pays a death benefit only after the second insured dies. It is often used for estate planning and business succession. Understanding this coverage helps you decide if it fits your goals. Survivorship life insurance is a type … Read more

The bottom line What is voluntary employee life insurance? It is an optional workplace life insurance benefit that an employee elects and pays for, with the exact coverage, product type, and employment rules set by the plan documents. Voluntary employee life insurance is the part of a workplace benefits package that you choose instead of … Read more

The bottom line What is a life insurance grace period? It is the payment window written into a policy after a premium due date, when the contract may keep coverage in force under its stated conditions. The exact length, payment needed, and effect of nonpayment come from your policy documents, not a universal number. A … Read more

The bottom line How does variable life insurance work? It combines a death benefit with cash value whose amount can change with premiums, policy fees and expenses, and the performance of selected investment options, so the contract’s prospectus and benefit design matter as much as the product label. Variable life insurance is a permanent, cash-value … Read more