New Release OH-Life-Agent-Series-11-44 OHIO Life Insurance Questions

Key person insurance is purchased by a business on the life of a key employee—someone whose knowledge, work, or overall contribution is essential to the business’s success. If the key employee dies or becomes disabled, the policy pays a benefit to the company to offset lost income, training of replacements, and potential business disruption.

TheWaiver of Premiumrider does not increase the death benefit amount. Instead, it waives the policyholder's obligation to pay premiums if they become totally disabled, ensuring the policy remains in force during the period of disability.

In contrast:

Cost of Livingrider adjusts the death benefit to keep pace with inflation, thereby increasing the benefit amount over time.

Accidental Death Riderprovides an additional benefit if the insured dies due to an accident, effectively increasing the total payout.

Guaranteed Insurabilityrider allows the policyholder to purchase additional coverage at specified times without undergoing a medical exam, thus potentially increasing the death benefit.

Aflexible premium deferred annuity (FPDA)allows the annuitant to makevarying premium paymentsover time. The annuity starts paying out at a future date, making it suitable for retirement savings.

"Flexible premium deferred annuities permit payments of varying amounts over time before annuitization, offering flexibility for savers."

Term life insurance provides coverage for a specific period and is generally more affordable than whole life insurance. It is suitable when maximum protection is needed at a lower cost, especially if the insured cannot afford the higher premiums associated with permanent insurance. Term policies do not accumulate cash value but offer substantial death benefits during the term.