Life Insurance Policy Provisions, Options, and Riders
Core provisions
An entire contract provision limits the agreement to the policy plus the attached application. The free look (10–30 days depending on the state) lets the owner return the policy for a full refund. The incontestability clause bars the insurer from challenging the policy for misrepresentation after two years from issue - but it never bars nonpayment of premium. Misstatement of age or sex adjusts benefits to what the premium would have bought, rather than voiding the contract. The grace period (typically 31 days) keeps coverage in force after a missed premium; the reinstatement provision allows revival within about three years with back premiums plus interest and evidence of insurability. Suicide is excluded for about two years, after which the death benefit is paid.
Nonforfeiture, dividends, and settlement
If a permanent policy lapses or is surrendered, nonforfeiture options apply: cash surrender, reduced paid-up (smaller paid-up face), or extended term (same face for a short period). Dividend options include cash, reduce premium, accumulate at interest, paid-up additions, and one-year term. Settlement options for the beneficiary include lump sum, interest only, fixed period, fixed amount, and life income (life only, life with period certain, refund life, joint and survivor).
Riders
Waiver of premium pays premiums during disability (typically after a waiting period). The guaranteed insurability rider allows additional coverage at set option dates without evidence. Accidental death benefit pays an extra amount if death is accidental, typically beyond a short window. Payor benefit waives premiums on a juvenile policy if the adult payor dies or is disabled. Accelerated death benefits advance part of the face for terminal illness. Child, term, return of premium, long-term care, and disability income riders add protection at cost.
Rule of thumb
Match the trigger to the rider: disability → waiver of premium; death of the paying adult on a child's policy → payor benefit; accident → accidental death benefit; terminal illness → accelerated benefit.