Life & Health Insurance

Not necessarily. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage for up to 18 months. COBRA applies to companies with 20 or more employees.

You will have to pay for your own health coverage but you’ll get the same discounted or “group rate” your former employer pays.

Also, keep in mind the new the federal Health Care Reform Law enacted in March 2010. Under this law, if you don’t find a new job with employer-paid health care coverage, you’ll have to buy your own insurance or else pay a penalty to the federal government.

This is the person(s) or other party(ies) designated to receive life insurance or annuity proceeds upon the death of the insured. The beneficiary is named when a policy is taken out and can be changed at the request of the policyowner.

A contingent beneficiary is the party designated to receive life insurance policy proceeds if the primary beneficiary should die before the person whose life is insured.

In order to change the beneficiary of a policy, the current policyowner typically must fill out a form with the necessary information and return it to the Insurer.

Loan Value is the amount of cash value that can be borrowed on a policy. A policyowner may be able to make a loan against the cash value of the policy, based on the type of policy owned. A loan allows access to the cash value of the policy, while still maintaining the insurance coverage. When a loan is made against a policy, the death benefit is reduced by the amount of the loan plus any interest that is owed. Loan interest rates vary and specific provisions are generally explained in the policy itself.

Generally, a policy owner can request a loan by calling a Service Center. However, in certain instances, a loan form or written request signed by the policyowner will be required. Please remember a policy loan accrues interest and will reduce the death benefit. A loan form or written request signed by the policy owner must be sent to a Service Center if:

• • There is a change of address pending when the loan is requested
  • The policy is company owned. Signatures of two officers and their titles will be required for corporations and the sole proprietor’s signature will be required for sole proprietorships
  • The proceeds of the loan are being transferred to a bank
  • The policy has multiple owners.
  • The policy is owned by a trust.