Ordinary Life Insurance

Ordinary Life Insurance

Ordinary life insurance is a life insurance that the insured person pays for there entire life, starting with the date that the person opted in and is continued up until the day the person dies.  Once the person dies, a sum of money, usually predetermined, is paid to a person or persons listed on the agreement as the beneficiary.


Ordinary life insurance is a form of life insurance that you make payments for throughout your life, much like any other form of life insurance, such as term insurance.  Although it is a lot like term life insurance, the differences are major and can come in handy.  Some of the major differences are:

    •    You can borrow against the money you have in your account
    •    You can make withdraws
    •    You can make dividends when you over pay
    •    The amount of money you put in is guaranteed to be there
    •    If you quit the insurance, you still have all or some of the   money you put in

Each of these things will vary from firm to firm, but the general principles are the same.

Ordinary life insurance can be bought and contributed to as early as term life insurance.  In most cases the sooner you opt in the lower your monthly contributions will be.  You will generally continue to contribute to your ordinary life insurance throughout your entire life.