Panama Life Insurance
There are 2 types of life insurance policies offered in Panama which are similar to those offered in the U.S.:
1. Universal Life Insurance (also known as Whole Life insurance with Savings) which allows an excess of the premiums to be paid which are credited towards to policy’s cash value. The cash value earns interest as if in a bank account. Every month the policy is debited by the cost of insurance (COI) fee along with any other fees or charges under the policy. Even if no premiums are paid in a given month, these fees and charges will be deducted from the total cash value. The earned interest usually contains a minimum percentage stated in the contract. Sometimes, the earning rate is related to a financial index such as government bonds or stocks which is known as an “Equity Indexed Universal Life Insurance” policy.
2. Term Life Insurance which is a policy with a fixed rate of premium payments for a limited time period. When that period expires, the coverage is no longer guaranteed forcing the customer to walk away or purchase another policy which can have different conditions and premiums. If the insured passes away during the set term, death benefits will be paid to the beneficiary.
In order to purchase real estate and a mortgage, the lender will require the purchaser to obtain a life insurance policy naming the lender as the beneficiary which ensures the mortgage will be paid.
Panama lending institutions also require the borrower to obtain a life insurance policy naming the lender as the beneficiary.
These life insurance policies must be purchased at a Panama life insurance company. Most Panama insurance companies offer life insurance policies.
Some Panama life insurance companies can issue a policy without requiring a medical exam. However, applicants over the age of 50 and applying for a policy over $100,000 USD will be required to undergo a complete physical medical exam along with medical lab tests before being accepted by the Panama life insurance company.