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Protecting Your Future, Today                          

The Benefit Basics

June 2008

 
In This Issue
If I retire or leave my job, can I take my group life insurance policy with me?
What is a Wavier of Premium on my life insurance policy and how does it work?
What is an Accelerated Death Benefit?
If I retire or leave my job, can I take my group life insurance policy with me?
Carrie Scherpenberg
 man w laptop
Yes.  A group life insurance policy can be converted into an individual whole life policy after leaving your job or retiring.  If you wish to convert your policy, you can do so without a physical examination or evidence of insurability within 31 days of leaving your job or retiring.   The amount of coverage you apply for cannot be more than the amount of your group policy.  It is important to note that the premium may change.  The new premium will be based on your age at the time of conversion.  The premium will almost always be more expensive because you are converting a term life policy, which has no cash value, into a whole life policy, which builds cash value over time.

What is a Wavier of Premium on my life insurance policy and how does it work?

Michelle Kirby

woman with bookA Waiver of Premium represents an option that provides for the continuation of life insurance coverage without further premium payments if the policy holder becomes totally disabled. A Waiver of Premium allows you to benefit from an insurance policy even when you cannot work. Most policies require you to be disabled for a specified amount of time, usually six months, and have an initial charge associated with them.

What is an Accelerated Death Benefit?

Kelli Finn
 Man on beach w dog
An Accelerated Death Benefit is a benefit tied to your life insurance policy.  The benefit states the carrier will pay a certain percentage of your life insurance, up to a certain dollar amount if you have been diagnosed as terminally ill and given less than a defined number of months to live.  An example of this benefit occurs when a carrier pays 75% of your current life insurance amount up to $500,000 if you are given less than 12 months to live.  To further illustrate, if you have a life insurance amount of $50,000 and have been diagnosed as terminally ill, the benefit would pay 75% or $37,500.  The rest of your money would be distributed to your beneficiary upon your death.
 
QUESTIONS OR COMMENTS?
 
Do you have a question you would like addressed in our next issue?
Please email Laura Lauber at laural@horanassoc.com or call (513) 745-0707

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