November 22, 2011
By: Jana Bell
While most U.S. households do have some form of life insurance coverage, a report from Colonial Life finds there are a number of features many plans offer which go overlooked.
One major feature many plans offer is a waiver of premium, which can pay for a policyholder's premium if they suddenly become disabled and can't make their payments. Other options may also allow for the plan to pay for long-term care costs even if a policyholder is still alive.
Another plan feature - mortgage protection - can pay off the balance remaining on a mortgage if homeowners pass away before all the payments are made. Otherwise family members may need to pay off the loan themselves or sell the home.
"Consumers need to be familiar with their life insurance policies so they don't overlook important features that could be critical to their livelihoods," says Jeff Koll, an assistant vice president at Colonial Life. "In addition, evaluate your insurance coverage from time to time to make sure it's appropriate for your stage in life."
Over the past few years, many consumers have avoided purchasing life insurance policies as the economy has struggled. According to LIMRA, 30 percent of U.S. households had no life insurance coverage last year.
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