Many people are offered life insurance coverage through their employment. Usually, employers in such cases act as a liaison between their employees and the insurance company providing group coverage.
Employers’ Human Resources departments are responsible for supervising the life insurance application process, explaining the terms of coverage, informing employees of changes in their group policy, informing employees of their eligibility requirements and, most importantly, distributing a copy of a group life insurance policy to their employees.
In addition, human resources and employee benefits personnel will oversee premium withdrawal from an employee’s paycheck.
There are many people who buy life insurance in order to secure financial future of their family in the event of death. If a husband is the primary or the only source of income in the family, he may want to buy life insurance to cover his family’s expenses after his death.
Usually, it is recommended to buy life insurance with a payout ten times your current salary. (There are life insurance calculators that will allow you to take various factors into consideration before deciding on the amount of insurance needed.)
Thus, if the husband decides to buy life insurance coverage in the amount of $1 million, his beneficiary (his wife or his children in this case) will receive $1 million tax-free upon his death.
Q: I am the surviving spouse of a deceased servicemember. Am I automatically entitled to the proceeds under his SGLI policy?
A: No. You are entitled the proceeds of his SGLI policy is you are the beneficiary.
The debate about what insurance companies should do to find beneficiaries of life insurance policies has been ongoing for a long time.
According to Oklahoma State Treasurer Ken Miller, even though 99 percent of life insurance policies are claimed by beneficiaries, the one percent of unclaimed funds amounts to billions of dollars across the United States.
If a policy exists and the beneficiary knows about it, he or she will file a claim in order to get paid. If, however, the policy exists, but the beneficiary does not know about it, the insurance company can claim it does not have to pay.
In the past, insurance companies did not have to pay unless a claim was filed. This trend is changing now, when many state regulators demand stringent reporting from the life insurance industry.
But the changes will not be visible soon. It may take years to distribute unclaimed money to all life insurance beneficiaries who are not aware they are owed payouts.
October 2014 is breast cancer awareness month. It has brought a more focused approach to raising money for improving treatment, prevention and finding cure for breast cancer.
The cause raised billions of dollars that helped many people survive this disease. Chances of long-term survival of breast cancer survivors are much greater now and many of them apply and get approved for life insurance. Breast cancer survivors’ long-term survival chances now get calculated and priced.
Life insurance coverage for breast cancer survivors has not been popular in the past, but with the new developments in treatment of the once deadly disease, more and more people qualify for affordable life insurance coverage. The main factors insurance companies are looking at are: the time period during which the applicant had cancer and the stage it was in.
A life insurance beneficiary designation is a document which names an individual who will receive the proceeds of a life insurance policy in the event of death.
All applicants for life insurance coverage are asked to name a primary beneficiary (an individual who will receive benefits after the insured’s death) and a contingent beneficiary (an individual who will receive benefits if the primary beneficiary is not available). It is common for people to name their loves ones as beneficiaries on their life insurance policies.
It is also common for people to forget to update beneficiary nominations after they purchase the policy. Many of us go through life without thinking about death and life insurance policies.
As a consequence, we have major life changes that may influence our earlier choice of beneficiaries, but we forget to actually update the policy. We may no longer wish for our ex spouse to receive our benefits, but unless we officially change the beneficiary on file with the insurance company, the ex spouse will get the proceeds after our death. This is how it works.