Modern Woodmen of America, Rock Island, Ill., recently introduced Step One, a term life insurance product that insures the life of a child or young adult to age 30.
The Step One product features a low premium rate"This product makes it possible for young families to start a life insurance plan that can grow with them," says Patrick J. Barnes, chief marketing officer at Modern Woodmen. "Consider a young family or three - Mom and Dad are under age 25, and they have a daughter. Each member of this family can own $25,000 of Step One life insurance for a total premium amount of $12.50 per month.* That premium amount is often less than the cost of pizza and soft drinks, two tickets to the movie theater or a monthly cell phone bill."
Other Step One features include:
- Future insurability - The plan can be converted at any time to term or permanent life insurance protection of up to two times the original amount.
- Guaranteed purchase options - The policyholder can purchase additional amounts of life insurance at stated ages without providing evidence of insurability.
"An individual with $25,000 of Step One life insurance could own $350,000 of life insurance protection at age 40, if he/she converts the Step One insurance to $50,000 of permanent coverage at age 24 and exercises all guaranteed options to purchase additional coverage," Barnes says.
Step One is part of Modern Woodmen's new Maximizer Series of life insurance products. The portfolio also includes Junior Max, a low-cost term life insurance product for children, and Maximizer, an adult term life insurance product.
Modern Woodmen designed the Maximizer term life insurance product for the middle-income market. "It features four premium payment options for terms as long as 30 years and provides level death benefit protection up to age 95," Barnes says.
Founded in 1883 as a fraternal benefit society, Modern Woodmen celebrates its 125th year of serving members and their communities. The organization offers financial services and fraternal member benefits to individuals and families throughout the United States.
* The total premium of $12.50 is based on the following assumption: Husband and wife are age 24 or less, and the child is a female.