Coventry Life Insurance: What You Need To Know

Coventry Health and Life Insurance Company is a national company that provides insurance plans to Missouri residents. It operates under the parent company Coventry Health Care Inc. and has been recognised in the Standard & Poor's 500 Index and the Fortune 500. Coventry has been a leader in the high net worth and corporate insurance markets for over 40 years, and its team has a deep understanding of the complexities of life insurance. The company offers a range of insurance products, including Preferred Provider Organization (PPO) and Exclusive Provider Organization (EPO) plans, as well as wellness tools and information for its members. Coventry also created the secondary market for life insurance, allowing policyowners to sell their policies and receive a fair market value.

Coventry's role in the secondary market for life insurance

Coventry is the leader and creator of the secondary market for life insurance. Since 1982, Coventry has been changing the way people think about life insurance by pioneering life settlements, giving life insurance a fair market value. Coventry coined the term "life settlement", giving consumers an alternative to surrendering their policies or letting them lapse. Coventry's leadership in this market has made secondary market transactions a mainstream financial planning option.

In creating a secondary market for life insurance, Coventry has transformed the financial services industry. Life insurance now carries a dynamic market value that can be independently appraised like real estate. As a result, consumers are realizing significantly more value for their unneeded or underperforming policies. Coventry's understanding of life insurance is unparalleled, and its team has a long history of innovation within the industry.

Coventry has been a leader in the sophisticated high net worth and corporate insurance markets for over 40 years. The company is well-versed in the complexities of life insurance, especially when dealing with policies that have large face amounts. Coventry's expertise and experience have led to it being recognized as the leading purchaser of life settlements in the nation.

Coventry has completed over $45 billion in longevity-linked transactions, and has delivered more than $5.7 billion to consumers through life settlements. Coventry and its affiliate, Life Equity, purchased over 1,600 policies in 2023, more than all other life settlement providers combined. Coventry's commitment to educating policyowners about the value of their life insurance policies and driving the industry forward has solidified its position as the market leader.

Coventry's history and leadership in the industry

Coventry is a leader in the life insurance industry, having been in operation for over 40 years. The company was founded in 1982 and created the secondary market for life insurance, pioneering life settlements and giving insurance policies a fair market value. Coventry has been recognised as the leader in this market, being the largest purchaser of life settlements in the US. The company has delivered over $5.7 billion to consumers to date.

Coventry's team has a long history of innovation within the industry, with an extensive understanding of life insurance, regulatory issues, and product development. They are well-versed in the complexities of insurance, particularly when dealing with policies that have large face amounts. Coventry has completed more than $45 billion in longevity-linked transactions, showcasing their deep understanding and unmatched experience in the industry.

Coventry is an affiliate of Coventry First, which has consistently been named the top life settlement company. Coventry has helped tens of thousands of policyholders evaluate their options and has challenged the conventions of the industry. By recognising the right of policyholders to sell their policies, Coventry has redefined life insurance and created a more competitive market where consumers have greater options and value.

Coventry's leadership in the secondary market for life insurance has made these transactions a mainstream financial planning option. The company has changed the way people view life insurance, with policies now carrying a dynamic market value that can be independently appraised, similar to real estate. As a result, consumers are achieving greater value for their policies, often receiving significantly more than the cash surrender value.

The types of life insurance policies offered by Coventry

Coventry is a leader in the life insurance industry, offering innovative solutions and creating a secondary market for life insurance. The company has been in operation since 1982, challenging conventions and redefining life insurance.

Coventry offers a range of life insurance policies to meet the diverse needs of its customers. Here is a detailed overview of the types of life insurance policies offered by Coventry:

Level Term Life Insurance

Level Term Life Insurance is a type of policy that provides coverage for a fixed term. If the insured person passes away within the policy's term, it will pay out, but there will be no payout if death occurs outside of the term. This type of policy usually runs for 5-25 years and is commonly used to cover a mortgage, ensuring that the remaining payments are taken care of.

Decreasing Term Life Insurance

Decreasing Term Life Insurance is the opposite of Level Term Life Insurance. It pays out if the insured person passes away during the mortgage term, but the payout decreases over time. This type of policy mirrors the outstanding balance on the mortgage, reducing as the amount owed decreases. It is often taken out in conjunction with other insurance products, such as Income Protection Insurance or Critical Illness Cover.

Increasing Term Life Insurance

Increasing Term Life Insurance provides coverage if the insured person passes away during the mortgage term, with the payout increasing over time. The value increases by a fixed amount until the policy term ends. This type of policy was introduced to protect against inflation and is usually linked to the retail price index.

Whole of Life Insurance

Whole of Life Insurance offers the highest level of financial protection. It lasts for the entire life of the insured person and guarantees a payout upon their death. Due to this guarantee, the monthly costs are typically higher than Level Term Life Insurance. It is crucial to maintain regular payments to keep the policy active.

Joint Life Insurance

Joint Life Insurance is suitable for couples, paying out if one partner passes away. Some couples prefer individual policies, as a joint policy becomes terminated after the first payout. With individual policies, each policy would pay out separately. Joint Life Insurance is often chosen to cover mortgage payments, as the money will be released after the death of one policyholder.

Retained Death Benefit

Coventry also offers a Retained Death Benefit option, which allows policyholders to receive a combination of cash and coverage without future premium payments. This option is available for those who are not ready to drop their life insurance coverage entirely.

The factors that determine the value of a life insurance policy

Coventry is a life insurance company that helps clients find new value in their life insurance policies. Coventry recognises the right of policyholders to sell their policies, challenging the conventions of the industry and redefining life insurance.

Premium Payments

The premium payments influence the overall value of the policy to a third-party purchaser. Premium payments are based on the policyholder's circumstances, such as age, health, lifestyle, and medical history. Generally, younger and healthier individuals pay lower premiums.

Age and Health

Age and health are critical factors in determining the value of a life insurance policy. The cost of premiums is typically lower for younger individuals and increases with age. Additionally, health status plays a role, with healthier individuals often paying lower premiums.

Policy Type

The type of life insurance policy chosen also affects its value. There are various types of life insurance policies, including level term, decreasing term, increasing term, whole of life, and joint life insurance. Each type has different features and benefits that impact the overall value.

Face Value

The face value, or face amount, of a life insurance policy is its total monetary value, including the death benefit and any riders. The death benefit is the amount paid to beneficiaries upon the policyholder's death. The face value can increase or decrease over time, depending on how the policy is managed.

Riders

Riders are additional benefits that can be included in a life insurance policy. They can increase the face value of the policy but may also lower the death benefit in some cases. Examples include accelerated death benefit riders and cost of living increase riders.

Cash Value

The cash value of a life insurance policy is a separate savings component that the policyholder can access while alive. It accumulates over time as the policyholder makes premium payments. Withdrawing cash from the policy will reduce the face value and the payout to beneficiaries.

Policy Loans

Taking out loans against the cash value of a life insurance policy will reduce the face value if the loans are not repaid before the policyholder's death. It is important to carefully consider the impact of policy loans on the overall value of the policy.

In conclusion, determining the value of a life insurance policy involves considering various factors, including premium payments, age, health, policy type, face value, riders, cash value, and policy loans. These factors collectively influence the overall monetary value of the policy and the payout to beneficiaries.

The option to sell a life insurance policy

Coventry is a leader in the secondary market for life insurance. The company has been operating since 1982 and has changed the way people think about life insurance by pioneering life settlements. This has given life insurance a fair market value and provided consumers with a compelling alternative to surrendering their policies or letting them lapse.

Life settlements represent one of the most important financial innovations of the past 40 years, providing policyowners more than four times what they would receive from the issuing insurance carrier. This option to sell a life insurance policy has created a more competitive life insurance market where consumers enjoy new options and greater value.

Policyowners frequently outgrow the usefulness of their life insurance policies. Many believe their only options are to let the policy lapse or surrender it to the insurance company. However, with Coventry, you can turn your policy into cash with a life settlement. When you sell a life insurance policy, you can even keep a portion of your policy’s coverage without having to make future premium payments. This is known as a Retained Death Benefit, which allows you to receive a combination of cash and coverage without future premium payments.

The value of a life insurance policy depends on several variables, including the size of the insurance policy, the type of policy, the policy's premiums, and the policyholder's health status. Those who choose to sell their life insurance policies receive, on average, four times more than they would earn from surrendering their policy back to their insurance company. Coventry's policy evaluation tool can help you determine if your policy qualifies for a life settlement.

As the recognised leader in the market, Coventry is the top purchaser of life settlements in the nation. The company has delivered more than $5.7 billion to consumers and is well-versed in the complexities of life insurance, especially when dealing with policies with large face amounts.

Frequently asked questions