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Frequently Asked Life Insurance Questions:



Q. How do I make a change to my life insurance policy?
A: Procedures for several common policy changes are as follows:

   Change of Address
    To notify United Heritage Life of your new address, you may:

  • Call our Client Services Department toll-free at 1-800-657-6351; or
  • Write us at P.O. Box 7777, Meridian, Idaho 83680-7777; or
  • E-mail us or
  • Contact your agent and ask him to notify the home office of the change.

   Change of Beneficiary or Change of Name
Contact our office or your agent as indicated above. A special Change of Policy form will be mailed to you to be completed and returned to the home office. When this completed form is received in our office, the change will be acknowledged and a copy of the Change of Policy form will be sent to you to be attached to your policy. Remember to keep us updated concerning any name or address changes for your beneficiaries.

   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)*.

 

 

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For additional information regarding any of these definitions, please contact our office.