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Missouri Life Insurance

What are the types of life insurance?

There are two types of life insurance — term and permanent. Term life insurance provides coverage for a specific period of time, whether it’s for 5, 10, 20 or 30 years. Permanent life insurance, also known as “cash value” life insurance, covers a policyholder for his or her entire life and has a financial component of the policy that will accumulate cash, like a savings account. Both types of insurance pay out what is known as a death benefit, which is the amount of money paid to the beneficiaries named in the policy upon the death of the insured.

What is term life insurance?

Term insurance provides protection for a specified period of time. Terms of one, five, 10 or 20 years or up to the age of 65 are available. This type of policy only pays a benefit if you die during the policy term. Term insurance doesn't build cash value. If you stop paying your premium, the insurance expires. This insurance is generally less expensive than other types of life insurance.

What is permanent life insurance?

Permanent life insurance is designed to provide protection for the entire life of the policyholder, assuming the premiums are paid on time. Permanent life insurance includes a death benefit and a financial component that will accumulate cash over the life of the policy. With permanent life insurance, part of the premium you pay goes toward building cash value. Therefore, the premiums are generally higher than term life insurance.

What are the types of permanent life insurance?


  1. Whole life — Premium remains constant throughout the life of the policyholder. Non-participating and participating are two forms of whole life. Participating whole life pays a dividend based on the profits earned by the insurance company. Typically, premiums of participating whole life insurance are higher than non-participating.
  2. Universal life — Universal life is more flexible than whole life insurance. This type of insurance invests a portion of your premiums into bonds or mortgages. The policyholder can increase or decrease the amount of the premium used toward the death benefit or the cash value.
  3. Variable life — Variable life insurance is similar to universal life insurance, but the policyholder has a wider selection of investment options, including the stock market. This can yield a high rate of return in a favorable market. However, in a poor-performing market, the death benefit and cash value of the policy may decrease.

Note: As with all investment decisions, consult with a trusted financial advisor before making a purchase.

What if my insurance company goes bankrupt?

The Missouri Life & Health Insurance Guaranty Association will pay your claim if your insurer becomes insolvent. The Guaranty Association is similar to the FDIC for banks. In Missouri, the maximum limit for a death benefit of life insurance policies is $300,000, while the cash value limit is $100,000. For example, if you have a life insurance policy with a death benefit of $250,000 with company XYZ and that company becomes insolvent, the Guaranty Association will pay the $250,000 death benefit if you die. The Guaranty Association is funded by insurers doing business in Missouri.

(Source: https://insurance.mo.gov/consumers/life-annuities/FAQ.php)

Illinois Life Insurance

How do I know which life insurance companies are reputable?

The Department of Insurance can provide you with the following information to assist you in making a decision about purchasing coverage: whether or not the company is licensed in Illinois; the number of complaints we have received about the company in recent years; and the company's financial rating from A.M. Best Company.

Is there a law against the insurance company or agent returning a portion of the premium when a new insurance policy is purchased?

The practice of the agent or company returning part of the commission or providing some other thing of value, such as a return in whole or part of the premium, is known as “rebating.” This practice is prohibited by law in Illinois. No refund, discount, gift or other inducement may be given to the insured to encourage the purchase of insurance.

Will my life insurance policy be protected if my company goes broke?

Insurance companies licensed to write life insurance policies in Illinois are members of the Illinois Life and Health Insurance Guaranty Association. If you are an Illinois resident who bought life insurance from an Illinois licensed company, Illinois law provides protection up to the following limits:

  • $300,000 in life insurance death benefits on any one life, regardless of the number of contracts issued
  • $100,000 in life insurance net cash surrender and net cash withdrawal values.

(Source: http://insurance.illinois.gov/Life_Annuities/FAQLife.asp)

We search the market for the best carrier with the best price to meet your unique, individual needs. Our number one goal is to to save you more money on your insurance. Submit your application for a MO or IL life insurance quote today, or call 800-335-2423.
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