Tim Wilhoit, agency owner of Your Friend 4 Life in Nashville, TN, and author answers a few uncommon life insurance questions that consumers and agents ask. Hopefully, one of these questions can help you as well.
How to Cancel a Globe Life Insurance Policy?
You may cancel your policy with Globe Life Insurance Company by calling 1-888-650-4081 which is their customer service line. This is a common practice to cancel all types of life insurance policies. If it is a cash value plan or permanent life insurance plan you may receive the cash value proceeds upon canceling. Be sure you are not close to an anniversary date that may pay you more money to wait until the date has passed. If it is a term policy then nothing more will be paid. I highly recommend you having another life insurance in place before cancelling this policy as it can take several weeks to get through underwriting. Also it is prudent to notify your bank or institution if your premiums are drafted from your account of the cancellation.
What is Jumbo Life Insurance?
A jumbo life insurance policy is a life insurance policy with a face amount so large that one insurance company cannot take all of the risk to pay the claim. There are several large reinsurance companies that insure the insurance company to cover that large claim. The most recent case involves a world record policy written in California to a Tech Billionaire for a face amount of $201 million that actually used 19 different insurance companies so no one company had more than $20 million in risk.
How to Withdraw Cash Value from a Life Insurance Policy?
First be sure you have a cash value life insurance policy. For example a whole life, universal life, indexed universal life or variable life, but not a term life which has no cash value. Locate in your policy the illustrations page. Depending on the years of accumulation you will see the cash value of the policy. You may “borrow” against the cash value at a very low interest rate and keep your coverage in force, which can be tax free. Or you may cancel your coverage and receive the full cash value amount but you will owe taxes on your growth. Simply, call the insurance company and ask for the proper form to be sent to you in order to execute the transaction. However, before doing the later, be sure to have alternative coverage in place unless you are fortunate enough not to have a need for life insurance in the future.
Do I Need to Have Life Insurance Before My Child Does?
Yes, a parent needs to carry life insurance unless your estate assets would care for the child in the event of your death. Possibly a 20 year term life insurance would care for your child through college. There are only a couple of reasons to purchase life insurance on your child. First and foremost to cover final expenses in case of a tragic death. Second, to protect the child’s insurability in the future in case of a disease diagnosis. Look at a 20 year term with a child life insurance rider. This is a very affordable way to protect your child and yourself. Use an experienced independent life insurance broker that can shop the market and find you the best product at the best price for your unique situation.
Does Death Have To Occur In Order To Receive Benefits Payment With A Double Indemnity Rider?
On life insurance, the only trigger for a claim to pay a beneficiary is death with a certified death certificate. The double indemnity rider you refer to pays double the face amount if the cause of death is accidental. The medical examiner makes this determination and the life insurance company will pay based on his or her ruling. If the cause of death is to be determined as natural causes, homicide, suicide, etc. the double indemnification rider will not pay, just the original face amount.
Please be sure and read all of the blogs in the series life insurance FAQs from April 2014, November 2014, June 2015 or February 2016 to find your question or contact Tim Wilhoit at Your Friend 4 Life.
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Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, grandfather of 2, entrepreneur, insurance agent, life insurance broker, employee benefit specialist, salesman, sales trainer, recruiter, public speaker, blogger, author and team leader with over 30 years of experience in sales and marketing in the insurance and beverage industries.