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The Curious Bag
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Traditional life insurance is an insurance policy that a person can acquire during their lifetime, which offers beneficiaries a specified amount of compensation upon death of the policy holder, according to investopedia.com,
Types
There are two types of traditional life insurance. Term life insurance only pays the beneficiary if the policy holder's life is terminated during the specified time period and does not accrue value during the term. Whole life insurance covers a person's lifetime, building more cash value with each year.
Premium
A traditional life insurance policy requires the holder to pay a monthly or annual premium to the insurance company. Premiums vary in cost depending on how what the policy covers.
Limitations
Many policies put limitations or conditions on the manner of death of the policy holder before distributing to a beneficiary. For example, insurance carriers may deny payment on a policy where the cause of death was suicide.
Rider
Riders are often placed on life insurances policies and are special provisions added to the policy.
Dividends
Depending on the type of traditional policy, a policy holder may receive dividend funds from the insurance carrier during their lifetime. Dividends and their amount vary by policy.
Source:
Investopedia: Traditional Whole Life Policy
Scribd: Quick Review--Traditional Life Insurance
Douglas Turner, PC: Life Insurance, Suicide & the Two Year/One Year Rules
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