Posts Tagged ‘whole life insurance’

Many life insurance policy provisions are straight forward and uniform anywhere in the country.  Although, with each state, there comes different laws and ways of enforcing them.  Here’s a list of provisions that must be included with every life insurance policy issued in the state:

  • All premiums except for the first payment, should be made one month in advance to the insuring companies home office or insurance agent.
  • A grace period of one month will be allowed after the first year of paying premiums, but may be subjected to an interest charge.
  • In the absence of fraud, all statements made by the insurance company are deemed to be representations and not warranties.
  • If there is a circumstance where the age is understated, the insurance death benefit will be adjusted to the correct insureds age and the policy will be paid out.
  • In participating policies, the companies dividend surplus must be divided no later than the third year of the policy.  The insured also has the option to choose between a reduction of premium payment, purchase paid-up insurance or paid cash with their share of the dividends.
  • Each policy must show a table of loan values and options for the first 20 years of the policy.
  • There also must be a table to show the installment of premium payments.
  • When there is a death benefit claim, the insurer must pay the benefit within two months after the receipt of proof of death.
These provisions are steady and constant with other states laws and provisions.  If you are interested in buying life insurance in Tennessee or have any other insurance needs in Nashville, visit our website.