Change of Policyowner
There may be many reasons to change the owner of a policy.
Any potential advantages and disadvantages of such a change
should be discussed with your attorney or accountant. If a
change is desired, contact our office or your agent, and a
Change of Policy form will be mailed to you.
Q. What premium-payment options are available for my policy?
A:
We have several convenient payment options available:
Preauthorized Payment Plan
If you choose the Preauthorized Payment Plan, we will automatically
withdraw the monthly premium payment from your checking or
savings account. This method provides the utmost ease in premium
payment and assures that your premium is routinely paid each
and every month. If you decide that this plan is best for
you, contact our office or your agent and request a bank authorization
card. Complete this authorization card and return it to our
office along with a blank check from your bank marked "void."
Direct Billing Plan
If you choose the direct billing option, a premium notice
will be mailed to you approximately three weeks prior to the
due date. You may elect to pay this premium annually, semiannually,
or, for some plans of insurance, quarterly.
Q. What happens if I cannot pay my premium?
A:
If your premium is not
paid by the end of the 30-day grace period and your policy
has a cash value, the nonforfeiture option specified in your
policy will take effect. Nonforfeiture options ensure that
the owner of a life insurance policy does not forfeit all
interest in the policy. Some nonforfeiture options are listed
below:
Automatic Premium Loan
The automatic premium loan provision states that United Heritage
Life automatically will pay an overdue premium for the policyowner
by making a loan against the policy's cash value. The use
of the automatic premium loan keeps the original policy in
force for the full amount of coverage, including all supplemental
benefits.
Reduced Paid-Up Insurance
The reduced paid-up insurance provision allows the net cash
value of the policy to be used to purchase life insurance
which is of the same plan as the original policy and for which
no more premium payments are required. The amount of paid-up
insurance that can be purchased under this option is smaller
than the face value of the policy.
Extended Term Insurance
The extended term insurance provision allows the net cash
value of the policy to be used to purchase term insurance
for the same amount of coverage available under the original
policy. The length of the term depends upon the amount of
the coverage, the size of the net cash value, the sex of the
insured, and the insured's attained age when the option is
exercised.
If your policy has not been
in force long enough to build cash value or if your policy
is a term plan, your coverage will be discontinued when the
grace period expires.
Q. If a special need should arise, can I borrow against
the cash value of my policy? How will this affect my policy?
A:
Deciding If a Policy Loan is Appropriate
While your permanent life insurance policy's cash value is
a flexible financial tool, remember that using this value
will affect your policy's performance. Your agent can help
you determine how this might impact your coverage. If the
insured dies before a policy loan is repaid, then the unpaid
amount of the loan is subtracted from the policy benefit.
Repayment of the Policy Loan
A policy loan may be repaid in full or in part entirely at
your convenience. At the time a loan is made, interest is
deducted in advance to the policy anniversary date or as specified
in the policy loan provision. Then the interest is billed
in advance on the unpaid principal balance.
Requesting a Policy Loan
Any amount up to the maximum loan value available may be borrowed.
To request a policy loan, simply call, write, or e-mail our
office, or contact your agent with the amount desired.
Q. How do I report a claim?
A:
The easiest way is to call
our toll free number, 1-800-657-6351. To begin the claim we
need the policy number and the date of death. We will prepare
the papers to be sent to the beneficiary. The call can come
from a family member, or many times the funeral home will
contact the company for you.
Q. What information do I need to submit with a claim?
A:
A completed claim form signed by the beneficiary, certified
death certificate, name of the executor of the estate if the
proceeds are to be paid to the estate. We might request additional
information in our letter if the beneficiary is a trust, if
the policy is contestable, or if the death occurred outside
of the United States.
Q. What is a contestable claim?
A:
If the insured dies during the first two years following the
issue date of an insurance policy, the insurance company is
legally permitted to verify the answers provided by the insured
on the application.
Q: What is meant by “free withdrawal” in my fixed annuity policy?
A:
Depending on which type of
fixed annuity you were issued, there are surrender charges
on withdrawals made in the first few years. Your annuity disclosure
form will outline the surrender charge percent and the policy
years to which these charges are applicable. You may make
one “free withdrawal” each policy year for an amount
not to exceed 10% of your account balance at the time of withdrawal.
Depending on which fixed annuity plan you have, some 10% free
withdrawals may be cumulative. In other words, if you did
not make a withdrawal one policy year, then you would be eligible
for 20% the next year, and so on up to 50% of your fixed annuity
balance at the time you make the first withdrawal of that
policy year. Feel free to call one of our Client Services
Representatives to find out which “free withdrawal”
period applies to your fixed individual annuity.
Q: What are my rights as owner of a fixed annuity?
A:
The fixed annuity contract
owner is the person or entity that applies for and purchases
the annuity. The owner can be a real person or a “non-natural”
person, such as a trust, a partnership, or a corporation.
The owner has a number of rights concerning an annuity. The
owner selects the annuitant, designates the beneficiary, and
is entitled to determine when the annuity benefit payments
will begin. Other rights allow the owner to fully or partially
surrender the annuity, add or withdrawal monies, change the
beneficiary, or change the ownership to someone else. If you
are the owner of a fixed annuity and you want to make changes
to your annuity, our Client Services Department will send
you the necessary forms to do so. Please note that change
of ownership on an annuity has income tax implications.
Q: Is my United Heritage Life Insurance Company fixed annuity a secure investment?
A:
Your United Heritage fixed
annuity is a very safe place for your money. State law requires
a life insurance company to establish reserves equal to 100%
of the amount of money placed in a fixed annuity plus the
accumulated interest, less any surrender charges still in
effect. Regular audits by insurance departments make sure
we operate in accordance with state law. State law also limits
life insurance company investments to more stable types of
investments, prohibiting investing in speculative investments.
In addition, United Heritage is evaluated by various independent
rating services. Standard & Poors has rated our company
A(q), which puts us in the top 15% of companies rated quantitatively
by S & P. A national, independent insurance rating firm,
A.M. Best, has rated United Heritage as A- (excellent)*.
