Legacy Funding Group Inc. says its new “Deferred-Benefit Life” policy will be an insurance product that will protect beneficiaries against the risk that an insured will live longer than expected.
Legacy, Malvern, Pa., says it will get the coverage for the product from highly rated life insurers.
Rather than compensating beneficiaries for the premature death of an insured, the DBL policy will compensate beneficiaries for financial losses resulting from “the post-mature death of a senior insured that has lived significantly beyond their normal life expectancy.”
All consumers ages 65 and older will be eligible for the coverage.
Policy owners will pay level monthly, quarterly or annual premiums until the insured reaches age 100 or passes away, the company says.
To minimize the required premiums, the DBL policies will develop no cash or surrender value, and they will pay no death benefit during an initial “benefit-deferral period ranging from 3 to 20 years, Legacy says.
Once the benefit-deferral period ends, the death benefit will increase each year, Legacy says.
The policy could be used in personal estate planning, and it also could be used by pension funds or care providers, Legacy says.