3.1.2 Industrial Life Insurance
Industrial life insurance is actually sold by home service insurers. The face value of these policies is usually smaller than most and provide modest benefits and a relatively short benefit period. Premiums are collected in person by the agent at the policyowner's home on a weekly or monthly basis.
A main reason for purchasing this type of policy is to cover funeral expenses. However, popularity of industrial insurance policies has declined over the years largely due to such factors as increased:
- average incomes;
- awareness of the need for insurance; and
- popularity, affordability, and availability of group life insurance coverage.
Conversion of industrial life
When an insured has industrial life policies with a single insurance company that total $3,000 or more in face value, the insured has the option to convert all of these policies into one ordinary life insurance policy without evidence of insurability. [Sec. 627.517]
