Industrial life insurance is a type of coverage that is designed to protect employees in the event of an unexpected death. It is important for business owners to understand what this type of policy covers, and how it can help protect their workers. In this guide, we will discuss the basics of industrial life insurance, and how it can benefit your business.
What Is Industrial Life Insurance?
The industrial policy is written for a small amount of coverage, usually $2,000 or less. The premiums are payable as often as weekly and monthly.
The main features of industrial life insurance are:
- Premium payments are made often.
- The benefits are usually less than $2,000.
- Premium units are used instead of insurance units in the calculation of sales. The rate book contains a list of the maximum amount of insurance that may be purchased with each week or monthly premium.
- The program covers everyone in your family, from birth to age 70.
- It is generally not necessary to have a medical examination.
What To Know About Industrial Life Policy
Many of the features that are found in individual life insurance policies are also found in industrial life insurance.
- A 31-day grace period for monthly premium policies, and 28 days for weekly premium policies.
- The application is not required to be administered in accordance with the policy.
- You don’t have to have a medical examination.
- Cash values do not increase enough to provide loans.
- There are no settlement options
- No suicide provisions.
- Nonforfeiture provisions prevent you from cashing in your life insurance policy until premiums have been paid for five years.
- Dividends are used to reduce the premium payment or to purchase more insurance.
Home Service Life Insurance
Another type of industrial life insurance is called home service life insurance. The policies are usually not very big, with face values ranging from $10,000 to $15,000. They are usually sold on a monthly debit plan (automatic bank draft) or payments by mail, which means you don’t need an insurance agent to collect the premiums.
Need Help Getting Life Insurance Coverage?
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