Darlene Denise - Another Insurance ?

Faith in Him · 03-14-2010, 07:31 PM

Hi,

I hope you don't mind me tapping into your wealth of knowledge about insurance issues.

I have a questions about acelerated benefits. I am afraid to call my insurance company because I'm not sure what they can do to me now that I have had cancer and a recurrence.

This is a what if should my health change. I would like to cash out the 50% so that I can build some memories with the kids. If I do this than will the balance go to my family should I die or is the 50% all we get?

Also, should I outlive the insurance policy which I plan on doing, can I get more insurance? This is assuming I am still NED.

Thanks,
Tonya

Shobha · 03-15-2010, 10:00 AM

Hi Tonya,

From my understanding, should you take out 50%, the balance should go to your family, in case you do not outlive the policy.

Not sure about getting more insurance. I am sure someone more knowledgeable will chime in...

Wishing you a long healthy life!

Darlene Denise · 03-15-2010, 12:11 PM

Tonya: First, your insurance company can't do anything to you. You have a valid paid contract that was purchased prior to your illness. You can take up to the specified maximum amount (usually 50%, sometimes more) and the balance will remain. Some contract specify a total maximum amount available. For instance, you may have a $500,000 policy but may be limited to a maximum of $150,000 accelerated benefits, as an example. You will receive a new policy face sheet showing the the new lower death benefit and lower premiums (based on the lower death benefit). The policy type will remain unchanged. Be sure to review your current beneficiaries to be certain they are indicated as you wish.

Simply call the company and tell them you need the necessary claim forms sent for Accelerated Death Benefits and any premium waiver for disability forms (if you have the rider and are on disability). You are not obligated to offer any explanations at this point. Just get the forms, complete them and submit them.

I need all a little more info to address your plan to outlive the remaining benefits. Is this a term contract? If so, how many years are left on the term. You may have some conversion options. Are you the policy owner and primary insured?

I am always happy to help, just keep in mind insurance contracts and state regulations vary, so, always best to consult with your adviser when making these important decisions. But, feel free to run anything by me and I'll give my thoughts.

Good luck and I send my best...Darlene

Faith in Him · 03-15-2010, 08:20 PM

Darlene,

I believe I have 11 years left on a term policy. I am the owner of the policy.

Thanks again for your help. I feel so much better knowing my options.

Tonya

Darlene Denise · 03-16-2010, 08:01 AM

Tonya: A term life policy has conversion options. Regardless of health or occupation, you will be able to convert all or perhaps a portion to a universal or whole life contract at non-rated premiums with the same company. This can be done at any time during the term period. You will not be able to increase your amount of coverage, only convert equal amounts. I have a term contract with 11 years also. My plan is to keep the term at the lower premium and if I am still here in 11 years, I will convert it. I have other Universal life insurance with the same company and will simply convert it over to that policy which is accumulating cash value that I plan to use to off set any increased premium.

With your long term plans, be sure to leave enough death benefit on your existing policy when taking the accelerated benefit to enable you to meet the minimum policy amounts necessary for conversion. I encourage you to speak with your agent about this.

Stay strong...Darlene