Kemper Life insurance provider that has been helping customers protect what’s most important to them for over 100 years. The company was originally founded in 1922 and is headquartered in Chicago, Illinois.
Kemper offers a diverse portfolio of insurance products to provide financial security for individuals, families, and businesses. The company provides automobile, homeowners, life, health, business, and specialty insurance services to customers across the United States.
Over the years, Kemper has grown significantly through acquisitions and expanding its portfolio of subsidiaries. It now operates through its insurance subsidiaries which include Infinity Property & Casualty, Trinity Universal Insurance, Unitrin, and other brands. Together they provide insurance for over 6 million policyholders.
As an established insurance provider with decades of experience, Kemper has built a reputation for financial strength and stability. It is currently rated A- by A.M. Best. The company aims to combine quality products with excellent service to offer customized protection solutions that meet customers’ evolving needs.
Types of Life Insurance Offered
Kemper offers several types of life insurance policies to meet different needs:
Term Life Insurance
Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. This type of policy only pays out if the insured dies within the term. Term life is often the most affordable option and useful for covering needs like paying off a mortgage.
Whole Life Insurance
With whole life insurance, the policy coverage lasts for the insured’s entire lifetime. The premiums are typically higher than term life policies but remain constant. The whole life accumulates cash value that can be borrowed. This type of permanent life insurance helps pay for final expenses.
Universal Life Insurance
Universal life insurance offers permanent coverage with flexible premiums that can be raised or lowered as needed. Part of the premiums go toward the death benefit, while the rest builds up cash value that earns interest. This policy allows customization of the death benefit and premium payments.
Guaranteed Issue Life Insurance
For those with pre-existing medical conditions, guaranteed issue life insurance provides coverage without a medical exam. This type of policy usually has lower coverage limits and higher premiums compared to medically underwritten insurance. Guaranteed issue life insurance ensures applicants can get coverage.
Term Life Insurance
Term life insurance provides coverage for a specific period, known as the “term”. It pays a death benefit to your beneficiaries if you pass away during the term.
How Term Life Insurance Works
With term life insurance, you choose the amount of coverage you want and the length of the term, usually 10, 20, or 30 years. The death benefit is paid to your beneficiaries if you die during that term. If you outlive the term, coverage expires unless you renew your policy.
Premiums are typically lower for term life insurance compared to permanent life insurance since it only provide temporary protection. Premiums may increase each time you renew your policy.
Pros of Term Life Insurance
- Lower cost than permanent life insurance
- Can get high coverage amounts for relatively low premiums
- Good option if you need life insurance for a specific period of time, like providing for young children
Cons of Term Life Insurance
- Only provides coverage for the policy term
- Premiums increase as you age
- May be harder to qualify for as you get older
- Does not build cash value like permanent life insurance
Cost of Term Life Insurance
Term life premiums are based on your age, health, lifestyle, and the length of the policy term. A healthy 30-year-old may pay $300 annually for a $500,000 20-year policy. A 60-year-old may pay $1,500 annually for the same coverage. The longer the term, the higher the premium.
The cost is significantly less than permanent insurance with the same death benefit. Term life gives you an affordable way to purchase higher coverage amounts when you need life insurance protection.
Whole Life Insurance
Whole life insurance is a type of permanent life insurance that provides lifetime coverage. As the name suggests, whole life insurance covers you for your entire life, unlike term life insurance which only covers a set amount of time.
Here’s how whole life insurance works:
-
You pay a level premium each year you have the policy. This premium is typically higher than term life insurance since it covers your entire life.
-
Part of your premium goes towards the death benefit, which is the amount your beneficiaries receive if you pass away.
-
Another part of the premium goes into a cash value account that accumulates over time. This cash value earns interest, although at a lower rate than you may get investing elsewhere.
-
You can borrow against or withdraw the cash value. Loans are charged interest. Withdrawals decrease the death benefit your beneficiaries would receive.
-
The policy and death benefit coverage never expire, provided you continue paying premiums.
Some pros of whole life insurance include:
-
Lifelong coverage
-
Cash value you can use while living
-
Fixed premiums that don’t increase as you age
-
Low risk investment vehicle since death benefit is guaranteed
Some cons are:
-
Much more expensive than term life insurance
-
Lower returns compared to investing the difference elsewhere
-
Loans and withdrawals can decrease the death benefit
-
Missed premium payments can cause the policy to lapse
Whole life insurance costs vary greatly depending on factors like age, health, lifestyle, and the insurer. Expect to pay a minimum of $50 per month for basic policies, with premiums in the hundreds for larger death benefit amounts.
Whole life insurance is worth considering for permanent protection or predictable cash value growth. But it comes at a steep price compared to term insurance. Shop around and weigh the pros and cons before purchasing a whole-life policy.
Universal Life Insurance
Universal life insurance is a form of permanent life insurance that combines death benefit coverage with a savings component. It is considered a flexible type of permanent life insurance because it allows policyholders to adjust their premium payments and death benefit amounts throughout the life of the policy.
With universal life insurance, part of each premium payment goes toward the cost of insurance and related fees, while the remaining amount gets credited to the policy’s cash value account. The cash value earns interest at a rate set by the insurance company.
Policyholders have the flexibility to pay premiums at whatever level they choose, as long as there are sufficient funds in the cash value account to cover the monthly costs of maintaining the policy. If premium payments fall short, the policyholder can either increase future payments or reduce the death benefit amount.
How Universal Life Insurance Works
Universal life offers adjustable premiums, an adjustable death benefit, and a cash value component that earns interest. Here’s an overview of how it works:
-
Premiums are deposited into the policy’s cash value account after the monthly cost of insurance is deducted.
-
Interest earnings accumulate in the cash value account on a tax-deferred basis.
-
Policyholders can access the cash value through policy loans or withdrawals for any purpose.
-
If the cash value falls to zero, the policy will lapse unless additional premiums are paid.
-
Upon the insured’s death, beneficiaries receive the death benefit amount (minus any outstanding loans).
Pros of Universal Life Insurance
- Flexible premium payments. Policyholders can pay as much or as little as they want, within limits.
- Adjustable death benefit. The death benefit can be increased or decreased as needs change.
- Cash value growth. Cash value earns interest and can be borrowed against or withdrawn.
- Tax benefits. Cash value growth is tax-deferred. Death benefits are income tax-free.
Cons of Universal Life Insurance
- Complexity. Universal life has more moving parts and requirements compared to term or whole life.
- Policy lapse risk. There is a risk of the policy lapsing if cash value falls to zero due to poor fund management.
- Surrender charges may apply. Withdrawing or borrowing too much cash value early on can result in surrender fees.
- Lower returns than investing elsewhere. Interest rates earned in the cash value account tend to be lower than other investment returns.