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New Uses Of Assets - A Living Benefit From Your Life Insurance Policy

How To Determine If Your Life Insurance Policy Has A Living Benefit

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If you have an individual life insurance policy:

  • Start by reviewing a copy of your policy.
  • If you are unable to find information in your policy about a living benefit or accelerated death benefit, don't assume there isn't one. It is not uncommon for a Living Benefit to be added by means of a rider (an amendment) to a policy at the home office of the insurance company, and in some cases may be available even though there is no documentation at all. To determine if your policy has a living benefit, speak with the insurance company. If the person who answers the phone says there is no such provision for your policy, ask to speak with a supervisor. Even if there is no provision, a person with discretion may be able to add one for free. NOTE: Before you call the insurance company about this subject, see Cautions.
  • If you've can't find your copy of the policy, request a duplicate copy from your insurance company. You do not have to indicate a reason for your request at this point, other than to say that you can't locate your policy and would like a duplicate as soon as possible.

If you have group life insurance:

  • Begin the process of finding out if your policy has a Living Benefit by reviewing a copy of your certificate of coverage, or summary plan description.
  • If you are unable to find information about a living benefit or accelerated death benefit in your paperwork, don't stop. It is not uncommon for this provision to be added by means of a rider (an amendment) to a policy at the insurance company home office, and in some cases may be available even though there is no documentation at all. To determine if this is the case you will need to speak to the insurance company or group to determine the availability of this provision. Before you call the insurance company about a Living Benefit, see Cautions.
  • If you don't have either of these documents, ask your employer or plan administrator for them. You may even consider asking for a complete copy of the policy, to which you are legally entitled. You don't need to indicate the reason for your request initially, and may simply state that you wish to review the details of your coverage. NOTE: An employer or plan administrator may sometimes make it difficult for you to obtain complete information about your coverage. If you run into trouble, we recommend that you put your request in writing and keep pushing for the information. Keep copies of your request and detailed notes about any conversations you have in the event that you need to file a complaint in order to receive documentation.
  • If it turns out there is no living benefit as part of the group policy, ask the person in the group who deals with the insurance company to see if the provision can be added immediately. The provision is free so there is no reason to prevent the group from asking.

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