Life Insurance Policy Questions

What is a beneficiary?

May I have multiple beneficiaries?

What's the difference between a Primary and Secondary Beneficiary?

Who can change the beneficiary?

What is a Nonforfeiture Option?

How do I get information about my policy values?

Does my policy have cash value?

Can I make a partial withdrawal of the cash value in my policy?

How do I end my policy for the cash surrender value?

Can I request a loan against the cash value of my policy?

What are the terms of a policy loan?

What happens to my policy if I don't pay the interest on my loan?

How do I repay my loan?

How do I check on my loan balance?

What is a dividend?

How can I use my dividends?

How do I change my dividend option?

My dividends are on deposit at interest. I want them used to buy paid up insurance. How do I do this?

What is excess interest?

Do I qualify for waiver of premium benefits?

Q. What is a beneficiary?

A. A beneficiary is the person or persons designated to receive the death benefit payable on an insured person after we receive due proof of death.

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Q. May I have multiple beneficiaries?

A. Yes, but you must designate the percentage or fraction payable to each.

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Q. What's the difference between a Primary and Secondary Beneficiary?

A. The Primary or First beneficiary is designated to receive the proceeds of the policy when the insured dies. The Secondary or Alternate beneficiary will receive the proceeds only if the Primary beneficiary dies before the insured person.

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Q. Who can change the beneficiary?

A. Only the policy's owner can change the beneficiary.

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Q. What is a Nonforfeiture Option?

A. Policies with cash value have Nonforfeiture Options. They tell us what to do with the value in your policy if you choose to stop paying premiums. Not all of the options shown below are available on every policy. You elect the option at issue or, if none is elected, it is assigned by policy provisions. The options available to you will be shown in your policy.

Reduced Paid Up Insurance - The cash value on the date of lapse is used to provide completely paid up insurance at a lesser amount. Any dividends or other credits are added to the amount, any loans or other indebtedness are subtracted. The cash value in the policy will continue to grow but at a slower rate.

Extended Term Insurance - The cash value on the date of lapse is used to keep the policy in force for as long as it can. The amount due at death is the original face amount plus dividends and other credits and less loans or other indebtedness. The cash value decreases monthly. If the cash value runs out before the maturity date, the policy will end. If there is any remaining value on the maturity date, it is paid to the policy's owner.

Cash Surrender - The policy is ended and a check is sent to the policyowner for the cash surrender value.

Automatic Premium Loan - When a premium payment is not made a loan is automatically processed to pay the premium due from the due date to the next policy anniversary or another period specified by state regulation. Interest is added to these loans. When the total loan exceeds the policy's cash value, the insurance will end.

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Q. How do I get information about my policy values?

A. If you have a Life Insurance Plan, call the toll-free number first. You will need your policy number and your social security number to get cash, loan, dividend, excess interest, and death benefit information.

If you are unable to get the information you need this way, call our local office or write us here.

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Q. Does my policy have cash value?

A. Not all Life Insurance Plans earn cash value. The easiest way to find out if your policy pays a cash value is to call the toll-free number.

If you are unable to get the information you need this way, call our local office or write us.

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Q. Can I make a partial withdrawal of the cash value in my policy?

A. Only certain Flexible Premium Adjustable Life (Universal Life) Plans allow partial withdrawal. Check your policy to see the terms and amounts that can be withdrawn. If allowable, you may call the local office or write us for the withdrawal. If your policy has a level death benefit, you must also send your policy.

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Q. How do I end my policy for the cash surrender value?

A. Cash surrender ends your coverage. You should think very hard and consider any alternatives you may have, such as taking a loan or withdrawing dividends before you decide to cash surrender. You may want to discuss your alternatives with the local office before you decide.

If you decide you want to cash surrender, you may have to sign a form and return it with your policy. You can call the local office or write us to find out what you have to do to surrender. You could also call the toll-free number.

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Q. Can I request a loan against the cash value of my policy?

A. If your policy has a loan provision, you may request a loan by calling the local office or by writing us. You may also obtain a loan form for your Life Insurance Plan by calling the toll-free number.

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Q. What are the terms of a policy loan?

A. The terms vary by policy. In general, interest is charged in advance from the date of the loan to the next policy anniversary at a rate specified in your policy. We may also have to deduct premium to the next policy anniversary if your policy specifies that it is needed. We bill you for interest annually. The interest notice is sent about 12 days before the payment is due.

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Q. What happens to my policy if I don't pay the interest on my loan?

A. Unpaid interest is added to your loan. If the loan and interest exceed the policy's cash value, we will write and ask you for a payment sufficient to decrease the loan so that it is less than the cash value. If you don't send the payment due, the policy will lapse.

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Q. How do I repay my loan?

A. We accept payments at any time. You have to let us know your payment is for your loan and write your policy number on your check or money order in order to help us apply your payment correctly.

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Q. How do I check on my loan balance?

A. Call the toll-free number, our local office, or write us.

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Q. What is a dividend?

A. Dividends are a share of the funds available for distribution to policyholders who have the same kind of insurance. If your policy says it is "participating" it is eligible for dividends if they are declared. Dividends are not guaranteed.

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Q. How can I use my dividends?

A. Dividend options are outlined in your policy. Not all options are available for every policy. The dividend options are:

Paid in Cash - We send you a check for the dividend when it is declared.

Used to Pay Premium - When the dividend is declared we use it to pay your policy as far in advance as it can or add it as a credit.

Left on Deposit at Interest - We hold the dividend on deposit, adding future dividends and interest as declared by the company. Dividends on deposit can be paid to you or used for any other option upon your request or with Company approval.

Used to Buy Paid Up Insurance - The dividend is used to provide additional paid up coverage payable upon death. This additional coverage has a cash value. The coverage may be surrendered for the cash value upon your request without ending your policy.

One Year Term Additions - The dividend is used to provide one year of additional insurance. This insurance will expire on the next policy anniversary.

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Q. How do I change my dividend option?

A. If your policy earns dividends, you can change your option by calling the local office or by writing to us. A change in the dividend option only effects how we will apply future dividends.

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Q. My dividends are on deposit at interest. I want them used to buy paid up insurance. How do I do this?

A. Write us if you want this change.

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Q. What is excess interest?

A. Excess interest is an additional amount of interest we pay on policies that are eligible for it. It isn't guaranteed. It can be used to purchase paid up additional insurance, used to pay your premium or as a one year term addition.

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Q. Do I qualify for waiver of premium benefits?

A. If your policy has a provision for waiver benefits, you would need to submit a claim form. You and your doctor should complete the form. Our claim specialists will review your form and notify you in writing of our decision. To request a claim form you may call the local office or write to us.

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