Paying for Life Insurance
Updated December 2, 2020 . AmFam Team
Having life insurance may be part of your long-term financial planning, and if you already have coverage to help secure your loved ones’ future, good for you! Sometimes, it can be difficult to understand the ins and outs of your life insurance policy — but we’re here to clear up any confusion.
Let’s take a closer look at the types of life policies available, and how paying for life insurance works for each.
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Term Life Insurance Policies
Term life insurance is exactly like it sounds: a policy that will remain in effect for a specific term or length of time. Term life insurance policies do not accumulate a cash value and pay out only if the insured dies while the policy is in effect.
At American Family Life Insurance Company, we offer four DreamSecure Term Life Insurance policies: 10-year, 15-year, 20-year and 30-year. These are level term policies, meaning the premiums (the amount you pay to keep your coverage in effect) and coverage amount (the amount your beneficiaries will receive upon your death) stay the same for the term you choose.
DreamSecure Simplified Term Life Insurance
DreamSecure Term Life Insurance
- Offers life insurance coverage for a set number of years at the initial price. Payment of premium must be made throughout the entire policy period and cannot be paid off in advance.
How long do I pay for term life insurance?
The amount of time you pay for life insurance depends on a number of factors. If you have term life insurance, you’ll pay a premium for a specific period of time like 10, 15, 20 or 30 years, in accordance with the length of your term life policy. You’ll choose the term limit when you buy the policy and your beneficiaries will only receive the death benefit if you pass away while the policy is active.
After your initial policy term, you might have the option to extend your term life insurance coverage, depending on your contract. However, because your rate was guaranteed only for the original term of your policy, your new policy’s premium cost will likely be much higher when extending coverage past the initial term.
Whole Life Insurance Policies
American Family Life Insurance Company’s whole life policies go that extra mile to help you provide financial protection for your family and the people in your life who count on you the most. It’s permanent coverage like this that can help bring you peace of mind — knowing that you’re looking out for your family’s well-being and keeping their dreams moving forward.
Limited Pay Whole Life Insurance:
DreamSecure 15-Year-Pay Whole Life Insurance
DreamSecure Children’s Whole Life Insurance
- Offers life insurance coverage for a set number of years at the initial price. Payment of premium must be made throughout the entire policy period and cannot be paid off in advance.
Whole Life Insurance Policies:
DreamSecure Whole Life Pay to 100 Life Insurance
DreamSecure Senior Whole Life Insurance
- A type of whole life insurance, where instead of paying premiums for a limited number of years, they continue for your “whole life.” Premiums are paid until you reach age 100, even though coverage continues to age 121.
Some of our DreamSecure Whole Life policies require premiums to be paid only for a limited number of years. A limited pay life policy like our Children’s Whole Life Insurance is a great idea for kids because it works in a few key ways. First, the policy contains a cash value feature, which grows tax-deferred. And secondly, the child will have a head start on coverage they may need as an adult.
And with the 10- or 20-year payment options, the policy could be paid in full before the child goes to college! Our DreamSecure Whole Life Pay to 100 Life Insurance policy guarantees level premiums — stretched out until age 100 — and it’s available to both children and adults.
How long do I pay for whole life insurance?
Our whole life insurance provides a set amount of coverage that lasts for your entire life. Your premiums stay the same for the entire length of your payment period. Better still, you get to choose the payment period that makes the most sense for you – which, depending on the product, may be 10 or 20 years or to a certain age, like age 100. And as long as you make all of the necessary payments and follow other policy terms, your beneficiaries will receive the death benefit whenever you pass away.
There are a variety of payment terms to choose from. Some of those choices might include:
- Pay the premium at a set rate until age 100.
- Pay the premium for a certain number of years. Keep in mind, you’ll pay higher premiums than if they were spread out throughout your lifetime, but once the payments are done, you’ll still be insured for life.
What happens if you don’t pay your premium?
When you don’t pay your premium for a life insurance policy, your coverage can lapse — meaning you’ll no longer be covered and, in the event of death, your beneficiary will not be paid the death benefit. Typically, a life insurance company offers a grace period, which is the amount of time you have past the due date to pay your premium.
If you pay within the grace period defined in your policy, your coverage can stay in force and you won’t have to reapply for life insurance.
Paying for Your American Family Life Insurance Policy
Here’s a quick look at some of the most common ways you can pay for your life insurance policy from American Family Life Insurance Company:
Mail in a Payment
You can pay quarterly, semiannually or yearly for your life insurance by mailing in your premium. For American Family Life Insurance Company policies, send your payment to:
American Family Life Insurance Company, 6000 American Parkway, Madison, WI 53783
Set up Automatic Payments
To pay by automatic funds transfer, contact your American Family Insurance agent or call our customer care center at 1-800-MYAMFAM (1-800-692-6326). Be sure to have your financial institution's information on hand.
Automatic payments are scheduled on a reoccurring basis. Payment types accepted are a checking or savings account. You choose the payment date, amount and payment method. You can change these options or stop a scheduled payment. You’ll also get an email reminder before your payment date.
You will be required to complete and sign an authorization form stating that you give American Family Insurance permission to automatically deduct funds from your account.
Pay by Phone
Give us a call at 1-866-424-8002 to use our automated pay by phone system.
Make a Payment with Pay Now
You can pay your bill directly from your personal checking, savings or debit/credit card account with Pay Now. You’ll need to enter your financial information, billing account details and policy information each time you make a payment using Pay Now.
Protect What Matters Most With Life Insurance
Connect with your American Family Insurance agent to find the life insurance coverage that best fits your needs.
This is a brief description of coverage and is subject to policy and/or rider terms and conditions which may vary by state. Fixed and guaranteed premiums are statements about the policy as determined at issue, and any changes made to a policy may affect the premium and are subject to our underwriting rules. The words lifetime, lifelong and permanent are subject to policy terms and conditions. DreamSecure Whole Life Insurance policies mature at age 121. Please check with an American Family agent for details on coverages and restrictions.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC17-223 WL, L-223 (ND) WL, L-223 WL, ICC17-224 WL, L-224 (ND) WL, L-224 WL, ICC17-228 WL, L-228 (ND) WL, L-228 WL
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