Most financial experts recommend term insurance because you get more coverage for the same dollar. This is vital for a family who must replace many years of future earnings that are lost when someone dies. "Whole life" insurance is more expensive because it requires higher premiums to fund a savings account. Many people buy economical term insurance and invest the savings on their own.
Rates are grouped in five-year age bands. Your initial rate is based on your age band when your insurance takes effect. Premiums increase when you enter a higher age bracket. Your rates will never go up due to a change in your health. The insurance company does reserve the right to change premium rates, but may only do so for all insureds covered under the group policy and with 60 days written notice. You can be sure that the benefit amount you choose is the amount we pay until age 65, when coverage amount reduces 50 percent.
This is also known as a "living benefit." It is a special feature of this DAN Group Term Life Insurance Plan and helps eliminate money worries in the last few months of a terminal illness, when medical bills and lost income can create financial problems. After 180 consecutive days of being insured under the group policy, if an insured member under age 70 is diagnosed with a terminal illness from which they are not expected to recover that will cause death within 12 months or less, as much as 60 percent of your total benefit amount less the discount is available as one lump sum to be used as you choose. The remaining benefit is paid to your beneficiary when death occurs, provided premiums continue to be paid.
Accelerated death benefits are not payable if the member has made an absolute assignment of his life insurance under the group policy, all or part of the member's life insurance under the group is to be paid to his child(ren) or former spouse as part of a court-approved divorce agreement, the insurance company does not receive written consent by any irrevocable beneficiary or the terminal illness is a result of intentional self-inflicted injury or attempted suicide. Receipt of accelerated death benefits may be taxable. Consult your personal tax advisor for specific details.
Your beneficiary is the person(s) last designated by you in writing and recorded by or on behalf of the insurance company. You may change your beneficiary designation at any time, unless irrevocable by written request. You are the automatic beneficiary for your spouse's insurance, if applying.
In most cases, the answer is no. Just answer a few brief health questions on the application. Issuance of a Certificate of Insurance or payment of benefits may depend upon the answers given in the application and the truthfulness of those answers. If tests are required, we will, with your permission, arrange an exam at your home or office. The exam costs you nothing.
Generally speaking, your beneficiary will not have to pay federal income tax on the life insurance benefits. In addition, the benefits will not be included in your estate for federal estate tax purposes as long as you retain no incidents of ownership in the insurance. Receipt of accelerated benefits may be taxable. You should consult a CPA or tax attorney for specific advice regarding this matter.
Once your application is approved, you will be sent a Certificate of Insurance. You get a full 30 days to inspect your certificate when it arrives. Review it at your leisure; show it to trusted financial advisors. If you are not happy for any reason, you may cancel your insurance by simply returning the Certificate within 30 days and owe nothing; your certificate will be void from the beginning of the coverage period. You are under no obligation of any kind.
If you have other questions, please call 1-800-446-2671 to talk to a customer service representative.