Pacific Life Insurance Company is rolling out a term life policy that guarantees payment of a monthly income if the insured primary wage earner dies.
Called Pacific Income Term, the policy will, upon the insured’s death, replace of all or part of the primary earner’s wages had the insured lived up to age 65, says Pacific Life, Newport Beach, Calif.
The payments will be paid up to the insured’s age 65, 10 years from policy issue, or 60 months, whichever is longer, the company says
The policy’s premiums can be lower than traditional term insurance, especially in the early years, the company adds, noting this is possible because the beneficiaries receive a guaranteed, predetermined monthly amount instead of a lump sum as occurs with traditional term policies.
The guaranteed income can be up to $50,000 per month.
“This type of cost-effective life insurance product can be especially attractive in the current economic environment,” says Alyce Peterson, vice president of marketing services-life insurance division.
Product and rider guarantees are backed by the financial strength and claims paying ability of the issuing company, Pacific Life says.