Pramerica life insurance has been a trusted name when it comes to life insurance for over 75 years. We know you want to protect your family and provide for them in the event of an emergency, but you may not be sure how much coverage is the right amount or what the different types of coverage might entail.
The good news is you don’t have to be a life insurance expert to take advantage of the many benefits offered by Pramerica life insurance. In fact, if you are looking for affordable, reliable, and dependable life insurance coverage, Pramerica is the ideal choice for you.
Pramerica provides life insurance that fits your needs, whether it’s a term or permanent coverage. Term life insurance provides no-risk protection for a specified period of time and features low premiums with a variety of payment options.
What is Pramerica life insurance?
Pramerica life insurance is a life insurance plan that gives you, the policy owner, unlimited personal and end-of-life benefits by paying off your death benefit directly after your death with a single premium payment. Despite the term, “payout” refers to the coverage that pays out when you die not who gets paid after you die.
Pramerica life insurance is designed to help protect you and your family from long-term financial loss due to your death.
How does it work?
There are two types: term life and universal life insurance. A term policy pays off a predetermined death benefit when you die. A permanent policy will pay out on your death or until the guaranteed benefit is exhausted.
The policy’s term will be based on how long you want to cover. You can choose from one day, up to 10 years, or 20 years. A policy with a term of up to 10 years will cost less than those with a longer term.
Term life insurance does not provide any cash value accumulation and does not build retirement benefits for you. Permanent life insurance is designed for people who have a specific amount in mind when they plan their financial future, such as saving for college or retirement.
Types of insurance
Annuities are designed to provide a stable stream of income for life. They are designed to build up a certain amount of cash value in order to cover at least part of the cost of the death benefit. Annuities, like term life insurance, can be purchased either as a one-time payout or you can choose an ongoing annuity that pays out on your death or when your guaranteed benefit is exhausted (whichever comes first).
2. Universal life insurance
Universal life insurance is a type of permanent coverage that offers flexibility and the potential for earnings. This life can be designed to pay out at death or when you exhaust your lifetime cash value accumulation.
3. Variable universal life insurance
In contrast to fixed universal life, variable universal life insurance can vary based on the performance of underlying investments. These investments can be stock market fluctuations, bond interest rates, or mutual funds. Variable universal life is riskier than fixed universal life because it will lose value if the market doesn’t rise as fast as expected.
Variable life insurance also has unique tax benefits in that you can contribute to your policy any time during the year and then receive a tax deduction for that contribution as long as you meet IRS criteria.
4. Indexed universal life
This type of insurance has a cap on the annual growth of each premium payment to ensure that no matter what, you will receive at least the guaranteed benefit. Indexed universal life insurance is often used by people with long-term care needs and may have a cash value accumulation plan built into it.
5. Whole life insurance
Whole life insurance has some important similarities with universal life insurance. It guarantees a death benefit, there is a cash value accumulation feature, and you can surrender or withdraw from the policy at any time. The difference is whole life policies have guaranteed premiums while universal policies are subject to variation based on the performance of investments.
1. Accidental death benefit
Pramerica will pay an additional death benefit if your policyholder dies accidentally while engaging in a covered activity.
2. Guaranteed cash value
Pramerica will always provide a guaranteed level of cash value to your policyholder even if you don’t make any premium payments.
3. Tax-free death benefit
If you are the policy owner, then any death benefits will not be taxed by the state or federal government when you die.
4. Easy access to cash
Pramerica offers a range of withdrawal options including lump-sum payout and scheduled payments.
5. Medical exams can be waived
Pramerica life insurance policies do not require an exam if you are at least 40 years old and your health is good. The insurance company will review your application and medical history, with the help of a third-party company, to determine whether you are eligible for less-expensive insurance coverage.
6. No medical underwriting
Pramerica will not require you to undergo a medical exam if you are over 40 years old, healthy, and meet other qualifying requirements. Pramerica life insurance can also be purchased as a stand-alone policy.
7. Instant death benefit
Pramerica provides immediate payment of the death benefit without having to wait for the cash value to build up. Once you die, Pramerica will pay out your death benefit immediately on your loved one’s behalf and then send the remaining balance to the beneficiaries.
8. No additional underwriting
Pramerica will not require you to re-underwrite your policy if you:
Move to a new state Change your job or job duties Lose or gain weight Have a change in family status Maintain your premium payments on time
9. Non-transferrable benefits
Each Pramerica life insurance policy is non-transferable. The death benefit and cash value of the policy belong to the original owner and beneficiaries only.
10. Accelerated death benefit
If you are diagnosed with a terminal illness. You can receive an accelerated death benefit even if you haven’t yet died.
11. No risk of lapse
Pramerica will not cancel your life insurance policy unless you become seriously ill. Or fail to make your premium payments on time. Nevertheless, there is a small risk you may have to re-underwrite the policy. If there have been changes in your health or other personal information.
There is a wide range of reasons to consider a Pramerica life insurance policy. They can be suitable for anyone who wants affordable, comprehensive, and reliable insurance coverage. While Pramerica’s policies don’t offer much flexibility with the type of plan you purchase. They are easy to understand and the company has been in business for almost 100 years.