Frequently Asked Questions - Life

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What is a Policy Contract?
A policy is a legal contract between you and us. A policy contract is issued in return for the approved application and the payment of premiums through the contract period.
What is a Universal Life Insurance Policy?
A Universal Life Policy provides either a level or increasing death benefit. The premium can be flexible if there is enough cash value in the policy to cover the mortality and other expense charges. Loans and partial surrenders are permitted on Universal Life policies. However, premiums may need to be increased when loans or partial surrenders are made to offset the monthly mortality and expense charges. Learn More About Universal Life
What is the cash value of a Universal Life Policy?
Cash value is equal to the policy value less a surrender charge and outstanding loan, if any. Cash value can provide a source of funds for the policyowner through loans, partial surrender or full surrender.
What is the surrender value of a Universal Life Policy?
This is the net cash value build up that the policyowner may receive if the policy is cancelled.
What is a Surrender Charge?
Simply put, a surrender charge is an early withdrawal charge deducted from the policy value.
What is an Annual Report?
Your annual report shows how the policy has performed for the last year. It quotes current cash values. The annual report breaks down the cost of insurance and reflects the amount of interest earned each month.
My annual report indicates I can ask for additional information?
You may request a more detailed illustration showing future values, based on the current premium and interest rate. This illustration shows how the policy will perform as long as no changes are made on the policy.
What is an Illustration?
A policy illustration gives you a projection of future values for your policy. The projection shows premiums, cash values, and death benefit amounts on a year-by-year basis.
What is a Policy Loan?
For Universal Life policies, the amount you borrow still earns interest but at a guaranteed interest rate instead of a current interest rate. You are not required to pay the loan back. However, as long as there is a loan against the policy, you will be billed a percentage of interest each policy anniversary. You can make payments on a loan. Therefore, it is beneficial to your policy for this amount to be paid back. If we do not receive the interest payment and there is enough cash value in the policy to cover the amount, the policy loan will increase by the amount of interest due. If there is not enough cash value in the policy to cover the interest amount, the policy could lapse. If a death claim occurs, the loan plus any outstanding interest not paid will be deducted from the death benefit proceeds paid to the beneficiary. Policy loans may affect how long your policy will stay in-force. Therefore, you may need to increase your premium at some time.
What is a Partial Surrender?
A partial surrender is simply taking the cash value from the policy. There is a $25.00 service charge for each partial surrender. if your Death Benefit Option is level, the face amount can be reduced by the total partial surrender amount. You have the option to keep the face amount the same. If the partial surrender is over $5,000.00 and you wish to keep the face amount the same, you will be required to provide evidence of insurability. Partial surrenders may affect how long your policy will stay in-force. Therefore, you may need to increase your premium at some time.
What is the Death Benefit?
The death benefit is the amount of money paid to the beneficiary at the time of the insured's death.
What is the Death Benefit Option?
A level death benefit option means the death benefit only includes the face amount of the policy. An increasing death benefit means the death benefit includes the face amount of the policy and policy value.
What is a Whole Life Insurance Policy?
Life insurance that remains in-force during the lifetime of the insured provided that the premiums are paid as specified in the policy contract.
What are policy dividends?
A refund of excess premium paid to the owner of an individual participating life insurance policy. Such a dividend is paid out of the insurers divisible surplus.
What are the dividend options?
The dividends may be paid in cash each year, kept on the policy to accumulate, earning interest, purchase additional insurance, or be used to pay part of the premium or outstanding loan amount.
What is a Term Life Insurance Policy?
This is a life insurance policy that provides coverage for a limited period of time.
I have lost my policy. Can I get another one?
You will need to complete a lost policy statement. This form indicates you have lost your policy. After we receive the completed form, we will provide you with a duplicate policy or proof of your policy in the form of a Certificate of Insurance. There is a $25.00 charge for each a duplicate policy requested.
What is a Beneficiary?
The person, persons, or other entity designated to receive the policy proceeds.
How do I change my Beneficiary?
You will need to complete a change of beneficiary form. Upon completing the form, you should mail it to our office. Upon receipt of the completed form, we will forward to the policyowner an acknowledgement of the complete change.
Is my spouse signature required on the beneficiary change form?
If you live in a community property state, we recommend that your spouse does sign the form.
My name has changed. How do I notify you of this?
If the insured's name has changed due to marriage, notify us of this change via our website, by email, by sending notification in writing, or by contacting our office at , extension 4300. We will send you confirmation in the mail of the change. If your name has changed for some other reason, you must complete a Name Change form and mail it to our office. The form is now available for download on our website.
What is an insured?
The Insured is the person whose life the policy insures. The Insured is the Owner of the policy unless someone else is named as Owner.
What is a Policyowner?
The Policyowner owns the insurance policy. While the insured is living, the policyowner may exercise all rights given by the policy or allowed by us. These rights include changing beneficiaries, changing ownership,enjoying all policy benefits, and exercising all policy provisions.
How do I change the ownership on my policy?
You will need to complete a Transfer of Ownership form and mail it to our office. The form is now available for download on our website. Upon review and receipt of the completed form, we will forward to the new policyowner an acknowledgment of the completed change.