When people think of life insurance, term life is usually one of the first things that comes to mind. Up until recently, term policies only extended to 30 years; most people outlive these policies, and therefore term life is considered “temporary” life insurance.
However, Banner Life just changed the game!
Read on to learn about Banner’s new OpTerm policies.
Quick Article Guide:
OpTerm is a term life insurance product offered by Banner/William Penn. These term policies are renewable and convertible, and provide a level death benefit.
Term Lengths Available: 10, 15, 20, 25, 30, 35, and 40 years
Coverage Expiration: Age 95
Underwriting Classifications: Preferred Plus, Preferred, Standard Plus, Standard, Preferred Tobacco, Standard Tobacco, and Substandard (through Table 12)
Conversion: Banner offers a conversion option to all term lengths. With this option, you can choose to convert some of all of your coverage into permanent coverage. However, you must do so by a certain age. For OpTerm, conversion is an option for the duration of the guaranteed level premium period or up until age 70 – whichever comes first. If a policy is issued at age 66 or older, conversion is available for the first 5 policy years.
If you’re not familiar, you can add life insurance riders to your policy for additional benefits. Some are free to add, while others have an additional cost. Here are the riders that OpTerm currently offers:
Waiver of Premium
This rider waives premium payments in the case that the policyholder becomes critically ill, injured, or disabled.
It is available to those through Table 4, up to a maximum face amount of 6 million dollars. All term lengths have this rider option. It’s available for those ages 20-55 for non-tobacco classes, and 20-50 for tobacco classes. WOP coverage will stop at age 65.
To waive all premiums, the client must give proof of total disability, and the disability must have existed continuously for at least 6 months.
Accelerated Death Benefit
With this rider, the death benefit can be paid early in the event of a qualifying terminal illness. The maximum ADB amount must be either less than $500,000, or 75% of the policy’s primary death benefit.
It’s treated as a lien, which earns interest over time. After the insured’s death, the death benefits payable are reduced by the total ADB lien.
This provides death benefit protection for families with one or more children. A single rider will cover all eligible children to either the child’s 25th birthday, the insured 65th birthday, or policy termination (whichever comes first). Any unmarried child, stepchild, or legally adopted child who is not older than 18 may be eligible for this rider, as long as they are a child of the insured, not the owner. This isn’t available in all states, so be sure to check with your agent if it’s available.
OpTerm also offers additional term riders in certain states, and these can provide temporary life insurance coverage for 10, 15, or 20 years after the initial coverage ceases. The premium rates per thousand of coverage are the same as the level OpTerm plans. Premium bands are based on each Term Rider’s face amount. Again, these are not available in all states, and the issue ages vary from the base plan, so make sure to consult with your agent to see if you qualify.
Below are sample monthly rates for the 35 and 40-year term policies for a male in preferred health.
35-Year Term, $250,000 & $500,000 Coverage
40-Year Term, $250,000 & $500,000 Coverage
*Sample rates are accurate as of 12/1/18 and are provided for illustrative purposes only.
Thinking about purchasing a term life policy? JRC can help!
At JRC Insurance Group, our agents are experts with multiple years of experience. We are appointed by dozens of top-rated life insurance companies and our agents are not pushy salespeople. Our agents do not have quotas; we’re here to help. We have helped hundreds of clients, and we can help you too. Our passion is finding our clients affordable life insurance coverage to protect their families.
Give us a call today, we would love to help! Toll free: 855-247-9555, or request a free quote here.
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