Colonial Life releases enhanced whole life insurance plan

New plan lets employees purchase greater amount of coverage

COLUMBIA, S.C. (Oct. 1, 2013) — Colonial Life has made enhancements to its whole life insurance plan that allows employees to purchase a greater amount of coverage and makes it easier for them to qualify for the coverage.

New interest rate regulations require many insurance companies to increase the cash value of their whole life policies in 2014. Colonial Life increased the cash value of its plan to comply with these regulations, but also made additional changes. The company’s revised Whole Life 1000 insurance plan allows employees to now purchase up to $300,000 in coverage. Employers with 50 or more employees can also offer this plan to their workers without answering any health questions, making it easier for more people to qualify for coverage. In addition, the product offers the traditional benefits of whole life insurance such as guaranteed level premiums, guaranteed cash value and a guaranteed death benefit.

“Whole life insurance is an important part of employee benefits plans for today’s workers and their families,” says Steven Johnson, assistant vice president, product development, at Colonial Life. “Whole life insurance, which features guaranteed stable premiums and builds cash value, does more than just cover final expenses. It can be used to provide for a family’s loss of income, mortgage costs and educational needs.”

Colonial Life’s whole life insurance plan offers important financial protection to workers and includes many benefits and features that appeal to brokers and their clients:

  • Choice of coverage amounts. Employees can select coverage amounts from $5,000 to $300,000.
  • Stable, predictable premiums. Premiums are guaranteed to never change.
  • Choice of plan designs. Employees and their spouses can choose from two plans, one that is fully paid when the policyholder reaches age 65 or one that is fully paid at age 95.
  • Tax-free benefits. The policy pays tax-free benefits directly to employees and their spouses, regardless of any other life insurance or Social Security they may have.
  • Opportunities to purchase additional coverage. Employees can purchase additional life insurance on their plans without having to requalify for coverage, if they purchase their policies before age 55. They can also purchase additional insurance on specified anniversary dates and after certain qualifying life events such as a marriage, the birth of a child or a divorce.
  • Accelerated death benefit. Policyholders with a terminal illness (and a life expectancy of 12 months or less) can be advanced up to 50 percent of the death benefit of their policies to use toward medical expenses or other costs.
  • Immediate partial claims payment. Beneficiaries can receive $3,000 immediately upon filing a death claim, providing readily accessible funds to meet pressing needs.  
  • Optional benefits offer expanded coverage. Employees can choose to enhance their coverage with the following optional benefits:
    • Choice of 10-year or 20-year spouse term riders. Employees can purchase life insurance for their spouses for either a 10-year or 20-year period, with guaranteed level premiums.
    • Children’s term rider. Employers can purchase life insurance coverage for their eligible, dependent children with premiums guaranteed to never change.
    • Waiver of premium rider. Employees and their spouses can purchase this additional coverage that waives the total premium if they become totally disabled due to a covered accident or covered sickness before age 65.
  • Portability. Individuals can continue their coverage if they leave their current place of employment, change jobs or retire, as long as premiums are paid on time.

For more information about Colonial Life’s whole life insurance plan, call 803.678.6599 or visit www.ColonialLife.com. Pre-existing exclusions and limitations will apply. Benefits vary by state and may not be available in all states.

About Colonial Life

Colonial Life & Accident Insurance Company is a market leader in providing financial protection benefits through the workplace, including disability, life, accident, dental, cancer, critical illness and hospital confinement indemnity insurance. The company’s benefit services and education, innovative enrollment technology and personal service support more than 80,000 businesses and organizations, representing more than 3 million of America’s workers and their families. For more information visit www.coloniallife.com or connect with the company at www.facebook.com/coloniallifebenefits, www.twitter.com/coloniallife and www.linkedin.com/company/colonial-life.