Buying Life Insurance

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The goal of life insurance is to provide a measure of financial security for your family after you die. A life insurance policy will help them meet the financial needs that your income would have normally covered. Life insurance can be purchased on an individual or group basis. Most group life insurance is purchased through an employer group and is usually term coverage that is renewed yearly. This Fact Sheet discusses the types of life insurance that are generally purchased by an individual.

Assessing Your Needs

Before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments, or college?

You should reevaluate your life insurance policies annually or whenever you experience a major life event such as marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business. Following are examples of factors you may want to consider at various stages of your life:

Single person with no dependents: Funeral expenses; medical bills; debts, such as credit cards or student loans; elderly parents who may be dependent upon you for support.

Note: Buying life insurance at a young age is cheaper. As you get older or possibly incur a serious health condition, it will be more expensive or difficult to buy a policy.

Single person with dependents: Funeral expenses; medical bills; outstanding debts; caretaker expenses for your surviving dependents; education costs for surviving children.

Couple with no children: Funeral expenses; medical bills; outstanding debts, especially mortgage or car payments.

Couple with children: Funeral expenses; medical bills; outstanding debts, especially mortgage payments; child-rearing expenses; education costs.

Note: Even if one partner does not work outside the home, you may want to consider life insurance to help pay for childcare or other services performed by that partner.

Older couple: Funeral expenses; medical bills; impact on spendable income; outstanding debts, such as a new home, second vacation home, or recreational vehicle; impact on assets you may want to leave for children or grandchildren.

Mandatory Provisions

All types of individual life insurance policies sold in Illinois must contain the following provisions:

• Incontestability Clause—An insurance company cannot void an individual life insurance policy after it has been in force for two years, except for nonpayment of premium. If a claim is filed within two years of the effective date, the company will review the application for insurance to make sure it was completed accurately. If you omitted information that would have caused the company to not issue the policy, the company may void the contract, return the premium and deny the claim. For that reason, it is extremely important that you accurately complete the application.
• Grace period—A life insurance company must give you a 30 day grace period for payment of premium.
• Free Look Period—Once a life insurance policy is delivered to you, you have a minimum of ten days to review it and decide if you want to keep it. If not, you can return the policy for a full refund.
• Allowable general exclusions—A life insurance company has the right to deny benefits if:
  • The insured commits suicide within the first two years of the policy.
  • The insured dies as a result of war or act of war while serving in the naval or military service or while serving in any civilian noncombatant unit serving with such forces.
  • The insured's death is related to aviation, except when riding as a fare-paying passenger of a commercial airline flying on regularly scheduled routes between definitely established airports.

Types of Life Insurance Policies

There are two basic types of life insurance policies: term life insurance and whole life insurance
(sometimes called permanent life insurance).

Term Life Insurance

Term life insurance is coverage you buy for a specific time period, such as 1, 5, 10, or 20 years, or up to age 60 - 65. Term life insurance has five key features:

1. It pays benefits only if you die during the time period (term) covered by the policy.
2. It is generally cheaper than whole life insurance.
3. It may be more practical for people who need large amounts of coverage for a specific period.
4. It ends if you stop paying premiums or at the end of the term. However, some policies have a "renewable" provision that allows you to continue coverage when the term expires.
5. It may have a "convertible" provision which allows you to exchange the term policy for a whole life policy without providing evidence of good health.

Variations of Term Life Policies

The most common types of term life insurance are:

• Level Term—The death benefit remains the same over the term of the policy. Premiums remain the same for the term of coverage.
• Decreasing Term—The death benefit decreases each year while the premium remains level. This type of coverage is often purchased in conjunction with a debt, such as a mortgage, which decreases over time.
• Increasing Term—The death benefit starts at one amount and increases at stated intervals by some specified amount or percentage. The premium also increases as coverage increases.

Whole Life Insurance

Whole life insurance is coverage that is meant to be in effect for life. Traditional whole life insurance has four key features:

1. It provides lifetime coverage.
2. It allows you to pay premiums at a fixed rate for as long as the policy is in force. (See the section on "Variations of Whole Life Policies" for exceptions to this rule.)
3. It accumulates cash value over time.
4. It may pay you dividends if your whole life policy is a "participating policy."

Cash Value

A small portion of the premiums you pay for a whole life insurance policy accumulates as cash value. The cash value is the amount of money that will be refunded to you if you cancel the coverage and surrender the policy to the insurance company. The rest of your premium payments go toward the cost of insurance and the administrative fees associated with maintaining the policy. When a death benefit is paid, the cash value is automatically included in the face amount of the policy and is not paid in addition to it.

Whole life insurance policies contain a table showing the policy's cash value after each policy year. You can use cash value in several ways:

• You can let it accumulate within the policy.
• You can borrow against it up to the net cash value of the policy. Note: if you die before the loan is repaid, the face amount of the policy will be reduced by the amount of the outstanding loan.
• You can use it to pay premiums.
• You can use it to buy a "paid-up" policy with a smaller death benefit in the event you wish to stop paying premiums for the whole life policy.
• If your policy lapses for nonpayment of premium, you can use the cash value to continue coverage as extended term insurance until the cash value is depleted.
• You can surrender (cancel) the policy and receive payment for the cash value.

Dividends

Dividends are profits the insurance company shares with its policyholders. Dividend payments are not guaranteed and they may change annually. Dividends are not included in the face amount of the policy. When a death benefit is paid, the dividends or additional paid up insurance purchased with dividends will be added to the face amount of the policy.

You can use dividends in several ways:

• You can leave them with the company to accumulate interest.
• You can use them to offset the premium due on the policy.
• You can use them to buy additional insurance.
• You can ask the company to send them to you.

Variations of Whole Life Policies

There are several variations of traditional whole life insurance. Among the more common types are:

• Modified Premium Policy—The premium for this type of policy starts out lower and then increases at a specified time. This feature allows you to purchase a larger death benefit and pay a lower premium initially and then pay a higher premium at a certain time (usually 5, 10, 15, or 20 years later) when you may be better able to afford it. The face value of the policy remains the same throughout the life of the policy.
• Modified Coverage Policy—The face value of this type of policy decreases by specified amounts either when you reach a certain age or at the end of a specified time period. For example, the policy may start out with a $500,000 benefit which decreases by $100,000 every five years until it becomes a $100,000 policy. This type of policy is designed for a person who needs more coverage early in life when debts are higher and children are younger, but whose need for coverage decreases over the years. The premium remains the same for the life of the policy.
• Limited Payment Whole Life Policy—This type of policy is "paid-up" after a specified number of years or at a specified age such as 60 or 65. Once the policy is "paid-up," the coverage remains in force, but no further premiums are due.
• Endowment Life Insurance Policy—This type of policy has a maturity date on which the benefit will be paid. If the insured is still living, the benefit or endowment is paid to the policyowner. If the insured dies before the maturity date, the benefit is paid to the beneficiary.
• Joint Whole Life—This type of policy is bought by two or more people. The benefit is paid when the first insured dies.
• Last Survivor Life—This type of policy is bought by two or more people. The benefit is paid after the last insured person dies.
• Family Policy—This type of policy can be purchased for a spouse and children in addition to the whole life policy purchased for the insured.
• Monthly Debit Ordinary—This type of policy is marketed by an agent at your home. The agent collects the monthly premium at your home.
• Single Premium—This type of policy requires you to pay the total premium in one lump sum when you buy the insurance. The protection is provided for your lifetime.

Whole Life Policies with Investment Features

Since the 1970s and 1980s, newer variations of whole life policies have emerged. Among the types of whole life policies with investment features are:

• Universal Life Insurance—This type of life insurance is characterized by flexible premiums, face amounts and death benefits. This product is similar to term life insurance except it has a cash accumulation feature. Money is subtracted monthly from the cash portion of the policy to pay the cost of the insurance which increases annually. Any premium payments that exceed the cost of insurance are placed in the cash portion of the policy to earn interest. Other key features of a universal life insurance policy are:
  1. Guarantees a minimum interest rate on the policy's accumulated value each year. A higher interest rate is paid when interest rates are high.
  2. Allows flexibility with regard to premium payments. You may elect to pay additional premium, pay a reduced premium or skip a premium completely if there is sufficient cash value in the policy to cover the insurance and administration costs. Note: Targeted premiums may increase if they are not adequate to keep the insurance in force as you get older.
  3. Allows for policy loans and cash withdrawals to the extent cash value is available.
  4. Allows flexibility with regard to the amount of the death benefit. This option may be useful if you want to change the face value to reflect your insurance needs.
  5. Requires your active monitoring and participation. The company provides you annual statements showing policy activity for this purpose. You are responsible for reviewing the statements and making required changes such as paying a premium if the cash value is decreasing.
• Adjustable Life Insurance Policy—This type of policy allows you to increase or decrease the coverage by changing the amount of premium payments or the period of coverage.
• Indeterminate Premium Life—This type of policy is also known as a nonguaranteed premium life insurance policy or avariable-premium life insurance policy. After an initial guaranteed period, the company can adjust premiums, if warranted, for the entire class of policies. The policy usually has a maximum guaranteed premium rate which the insurer cannot exceed. This feature allows you to purchase a policy at a lower price initially.
• Interest-Sensitive Whole Life Insurance—This type of policy is also called current assumption whole life insurance. This product varies the premium rates like indeterminate premium life insurance, but also provides that cash value of the policy can be greater than that guaranteed. The additional cash value can be used to lower the premium or increase the cash value of the policy. If the policy has unfavorable experience, you can lower the face amount of the insurance or pay a higher premium to keep the death benefit level. Once again, there is a maximum guaranteed premium rate which the insurer cannot exceed.
• Variable Life Insurance—This type of policy allows the death benefit and the cash value to fluctuate according to the investment performance of a special investment account, called a separate account. Since you assume the risk for the investment under a variable life insurance policy, it is considered a security by the U. S. Securities and Exchange Commission (SEC) and is subject to their regulation as well as that of the state Department of Insurance. The product must be registered with the SEC and sales agents must be licensed in accordance both with SEC laws and state insurance laws. Other features include:
  1. Allows you to control the investment of the policy's cash value.
  2. Benefits and cash value of the variable account fluctuate according to the experience of the investment account you choose. You assume the risk of good or poor investment performance. The variable account contains no guarantees of investment earnings or cash values. Be sure to request a prospectus that contains extensive disclosure information about the company's investments and investment policies.
  3. Requires your active monitoring and participation. It is useful for people who are comfortable making investment decisions and who want to choose among investment options available through their companies and policies.
  4. Premium can be either fixed or flexible, depending on the policy you choose. Scheduled Premium Variable Life has premium payments that are fixed for duration and amount. Flexible Premium Variable Life has premium payments that allow changes in the duration and amount paid.
• Variable Universal Life Insurance—Combines the flexibility of universal life insurance with the investment flexibility and risk of variable life insurance. Allows you to choose the premium amount and face amount of the policy and a separate investment account for the cash value. Like a variable life insurance policy, there is no guarantee of investment earnings or cash values. These policies must also be registered and comply with SEC regulations.

For More Information

Call our Consumer Services Section at (312) 814-2420 or our Consumer Assistance Hotline toll free at (866) 445-5364 or visit us on our website at insurance.illinois.gov

Frequently Asked Questions—Individual Life Insurance

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General Questions

1. How do I know which life insurance companies are reputable?

The Department of Insurance can provide you with the following information to assist you in making a decision about purchasing coverage: whether or not the company is licensed in Illinois; the number of complaints we have received about the company in recent years; and the company's financial rating from A.M. Best Company.

2. Is there a law against the insurance company or agent returning a portion of the premium when a new insurance policy is purchased?

The practice of the agent or company returning part of the commission or providing some other thing of value, such as a return in whole or part of the premium, is known as “rebating.” This practice is prohibited by law in Illinois. No refund, discount, gift or other inducement may be given to the insured to encourage the purchase of insurance.

3. Will my life insurance policy be protected if my company goes broke?

Insurance companies licensed to write life insurance policies in Illinois are members of the Illinois Life and Health Insurance Guaranty Association. If you are an Illinois resident who bought life insurance from an Illinois licensed company, Illinois law provides protection up to the following limits:

• $300,000 in life insurance death benefits on any one life, regardless of the number of contracts issued
• $100,000 in life insurance net cash surrender and net cash withdrawal values.

4. What about my annuities? Are they also protected if my company goes broke?

The Illinois Life and Health Insurance Guaranty Association covers up to $100,000 in present value, including net cash surrender or withdrawal values, per annuitant; and up to $5,000,000 in present value per unallocated group annuity.

5. My mom died recently. We think she had life insurance but we can't find any policies. Is there a central records bureau that keeps track of all life insurance policies sold in Illinois?

Unfortunately, there is no clearinghouse of information for life insurance policies. You should go through your mother's cancelled checks and credit card receipts for names of insurance companies to which she may have paid premiums. You should contact her employer or her former employer or union to find out if she was covered by a group policy. Also, if she belonged to an association, she may have had insurance through them. You might also check with her insurance agent to see if he has a record of a policy for your mom. There are several services available on the Internet that perform searches for lost life insurance policies. Many of these services charge a fee. To find a service, do a search for "lost life policies" on any Internet search engine such as Yahoo or Gomez. The Department of Insurance does not regulate or endorse these services.

If you know the name of the insurance company but cannot locate a policy, you may contact the company and ask them to do a search. Make sure to provide the company with all names your mother may have used, as well as her social security number.

If you find a policy but cannot locate the company named on the policy, the Department of Insurance can tell you if the company has moved, changed its name, or merged with another life insurance company, and provide you with a current address and phone number.

6. I purchased a life insurance policy from an insurance company over twenty years ago. This company is no longer in business. How can I find out where my policy is now held?

The Department of Insurance can tell you what happened to the original company. If, for example, it was purchased by another company, we can provide the name, address and phone number of the new company. If you are unable to determine if your policy has been assumed by the new company, contact our Department in writing or by e-mail. We will then contact the succeeding carrier to see if we can determine what happened to the policy.

Beneficiary Questions

7. Can I designate whomever I want to be a beneficiary on my life insurance policy?

Most insurance companies require that the beneficiary have an insurable interest in the life of the insured at the time of application. In other words, the named beneficiary would suffer a financial loss should death of the insured occur. An insurable interest is presumed for close family members such as spouse, children, parent, grandchild, sibling, etc. However, an insurable interest is not presumed when the designated beneficiary is a more distant relative or a person who is not related. An insurance company may decline to issue a life insurance policy to an applicant if the company questions the appropriateness of the beneficiary designation.

8. In that case, how can a bank be named a beneficiary of a life insurance policy I purchased when I borrowed money to buy my home?

The beneficiary must be able to satisfy the insurable interest requirement. If you borrow money from the bank to purchase your home, the bank would have a financial, and consequently insurable, interest in your life.

9. My husband passed away. The beneficiary on his life insurance policy is his ex-wife because he forgot to change it. What can I do to receive the benefit?

The beneficiary designation by your husband probably states, "(ex-wife's name), wife of insured." While she is no longer married to the insured, the courts have ruled that words such as "wife of the insured" are descriptive only. The name of the beneficiary itself is controlling. Therefore, the courts have held that the benefit is payable to the person named as beneficiary whether or not the descriptive term is correct.

Cash Value Questions

10. How can I find out the cash value of my whole life insurance policy?

All policies that produce cash values must state the method used to compute such values and they must list the cash value available at the end of each of the first 20 years that the policy is in force. You may also write to the company to request the exact cash value of your policy. Many companies also send an annual statement to the insured, which specifies the cash value of the policy.

11. Why is the cash value of my life insurance policy much less than the total premiums paid?

Cash value or cash surrender value of a whole life insurance policy is the amount of money the policyowner will receive as a refund if the policyowner cancels the insurance and surrenders the policy to the company before the policy matures. The amount of cash value depends on the face amount of the policy, the length of time the policy has been in force, and the length of the policy's premium payment period. The cash value will increase throughout the life of the policy and will eventually equal the face amount of the policy, but usually not until the insured reaches the age at the end of the mortality table used to calculate premiums for the policy, usually age 100.

12. I bought a life insurance policy one year ago. I thought that after one year I could surrender the policy and receive a refund of premium paid in excess of $1,000. The company says the cash value is zero. Why is there no value to my policy?

Most whole life insurance policies do not provide cash value until the end of the second or third year. However, insurance companies are permitted to provide cash values sooner as a means of competing in the sale of life insurance. Check your policy to determine when the cash value is provided.

13. I borrowed money from my life insurance policy. How does that affect the cash value?

The cash value of your policy will be reduced by the outstanding amount of the loan. If you write the insurance company for the cash value of your policy, their response should include adjustments for loans outstanding against the policy.

14. I purchased a life insurance policy for my child who is now an adult. I tried to cash the policy in for its cash value but was told by the insurance company that my child owns the policy now. How did this happen?

Most life insurance policies which cover the life of a minor child state that the child will automatically assume ownership of the policy when he or she becomes an adult. Check the section of the policy on ownership to determine if that is what has happened in your case.

15. I surrendered my life insurance policy over 30 days ago. How long does the company have to send me the cash value of my policy? How much interest am I entitled to collect?

Illinois law allows the insurance company to defer payment of the cash surrender value of a life insurance policy up to six months after the application for surrender is made. However, most insurance companies pay in a timely manner. Insurance companies are not required to pay interest for cash surrender. If you believe your company is taking too long to pay you, you should contact our Department for assistance.

16. I have a life insurance policy with a $1,000 benefit. I have paid over $1,200 in premiums on this policy. How can it only be worth $1,000?

Premiums paid for life insurance are not like deposits in a bank where the insured can always get back at least the amount which has been paid in. The primary purpose of life insurance is to provide protection in case of death. If you die, the company pays the death benefit regardless of the amount of premiums that have been paid. The company must stand ready to pay the death benefit guaranteed by the policy even though that benefit may be many times the amount of premium received. A basic insurance principle is that the losses of one individual are shared by many. The claims of those who die are met in part by the premiums paid by those who survive. Thus, part of the premiums you have paid went toward the payment of death claims for other policyholders.

17. I purchased a term life insurance policy which has expired. Shouldn't the company refund some of my money since no claims were ever filed?

Term life insurance products provide coverage for a specified, limited period of time that can be as short as one year or as long as thirty or forty years. Term life insurance provides for insurance protection only and provides no further benefits when the term expires.

Death Benefit Questions

18. Is double indemnity a standard provision of all life insurance policies?

Typically, an accidental death benefit is provided in an amount equal to the amount of insurance provided by the life policy. For example, if the death benefit were $10,000, the accidental death benefit would be $20,000. For this reason, the accidental death benefit is often referred to as "double indemnity." However, as a general rule, the accidental death benefit is available only on application and is added to the policy by rider for an additional premium.

19. My insurance company has returned my premium after a claim was filed for a death benefit for my wife. Can they do that?

The insurance application form is part of the life insurance contract. The applicant signs the application affirming that all information is true and correct to the best of his/her knowledge, and the insurance company issues a policy based on that information. Contracts may be rescinded (coverage voided and all premiums returned) within the first two years if the insurance company discovers a material misrepresentation. "Material" means that the information would have affected the issuance of the policy.

For example, if a person answers a question on the application about heart disease as "no" and the company learns that the applicant had been treated for a heart attack, this would be considered a material misrepresentation since the coverage may not have been issued if the correct information had been provided. When a claim is filed within the first two years after issuance of the policy, it is not unusual for the company to investigate the validity of the application. Even if a material representation was not intentional, the company may rescind the policy.

20. What if the reason for the rescission had nothing to do with the cause of death?

The company may rescind the coverage for any material misrepresentation, whether or not it was directly related to the cause of death. For example, if an applicant fails to disclose on the insurance application that he has heart disease but then dies from cancer, the company may rescind the coverage for failure to disclose the heart disease.

21. After my mother died, I filed a claim with the life insurance company and received a death benefit check from them. In the meantime, my cousin has filed a claim and states she was the named beneficiary. The company has now stopped payment on the benefit check and has turned the matter over to the courts. What has happened?

When an insurer is faced with conflicting claims for policy proceeds, and there is reasonable doubt as to which of the claimants is entitled to the proceeds, the matter is turned over to the courts using interpleader. This means that the insurance company pays the policy proceeds directly to the court, stating that they cannot determine the proper recipient. The court examines the evidence and determines the proper party to receive the money and awards the money. Unfortunately, you will have to defend your right to policy proceeds and may need the assistance of an attorney to do so.

22. I have been approached by someone who says they want to purchase my life insurance policy and can pay me a percentage of the death benefit now (the benefit amount payable on the death of the covered person). Can I sell my policy?

Such a practice is usually called either a viatical settlement or life settlement. While this practice is legal, we encourage you to review the Illinois Department of Insurance fact sheet entitled Stranger/Investor Originated Life Insurance (STOLI)prior to selling your policy. It is important that you fully understand your options, as well as the financial impact of your decision.

A Shopper’s Guide to Long-Term Care Insurance

NAIC Information on Long-Term Care Insurance

Replacing Life Insurance Policies or Annuities

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If you already own a life insurance policy or annuity, you should think twice if someone suggests that you replace it - especially if you have had the policy for a long time. That doesn't mean you should never replace a policy, but you should think carefully before making that choice. To help protect your interests, insurance companies and agents in Illinois must follow certain requirements when you replace a policy or annuity.

What is Considered a Replacement?

If you are buying a new policy, under Illinois law, you are "replacing" your current policy if you:

• let it lapse, or forfeit, surrender or terminate it;
• convert it to a reduced paid-up policy, continue as extended term insurance, or otherwise reduce in value by use of nonforfeiture benefits or other policy values;
• amend it to reduce benefits or terms;
• have your policy or annuity reissued with a reduction of cash value; or
• pledge it as collateral or take a loan against the policy for more than 25% of the loan value.

Which Policies Apply?

All life insurance and annuity replacements must comply with Illinois replacement laws except:

• credit life insurance policies;
• group life insurance and annuity policies;
• life insurance that is issued in connection with a pension;
• contracts that are registered with the Securities and Exchange Commission (SEC), such as variable life insurance policies and variable annuities;
• non-convertible term life insurance policies that will expire in five years or cannot be renewed;
• life insurance or annuity policies where the replacing insurer is the same company or under common ownership; and,
• if the total cash surrender value is less than $500 and the face amount of the policy is less than $5000.

Before You Consider Giving Up Your Current Policy

• Make sure you are still insurable. Check any medical or other qualification requirements the new company may have. You don't want to give up your current policy only to find out you are not insurable with the new company.
• Understand that there may be no advantage to replacing a life insurance policy or annuity with another life policy or annuity because it may be years before the cash value in the new policy reaches the level in your current policy.
• Make sure the new policy has the same provisions as your old policy. Many times, older policies have good features that aren't offered in newer policies, such as low interest rates for loans.
• Understand that you may have to satisfy limits in your new policy that have already been satisfied under your current policy. For example, a life insurance policy or annuity has a two-year "incontestable" clause. That means after the policy has been in force for two years, the insurance company must, by law, pay a death claim even if there were misrepresentations in obtaining coverage, unless fraud can be proven. With a new policy, the two-year incontestable clause begins all over again.
• Remember that you are older now than you were when you bought your current policy. A new policy will likely cost you more because of your age.
• Tell your current agent or insurance company that you are thinking of switching policies. They may be able to match or beat the offer with their own new or updated products.

When Talking to an Agent or Company about Replacement

• Call the Department of Insurance to make sure the new insurance agent and company are licensed to do business in Illinois. Ask if any complaints have been filed against them.
• Make sure the application contains truthful statements about your health conditions. Don't leave information off the application, even if the agent suggests it. Misrepresentations or omissions on the application could jeopardize your coverage. Your signature on the application means you have read and agree with the information on the application.
• Make sure the application clearly states that you intend to replace your existing insurance policy. If the agent or company knows that you intend to replace your existing policy, they must give you a copy of a "Notice Regarding the Replacement of Life Insurance or Annuity." This notice gives you advice to think about before switching policies or annuities.
• If you are buying the new policy from an agent, he or she must give you a copy of the notice at the time of the sale. If you are buying the new policy directly from a company, the new company must: 1) ask you for a list of the policies you intend to replace and the names of your current insurers; and 2) mail you a copy of the notice within three (3) days of receiving your application.
• The new company must also send a "Notice of Proposed Replacement of Life Insurance or Annuity" to your existing insurer stating that you are replacing your existing policy. The notice must contain your name and address, your existing insurance company's name and address, your existing contract number and the agent's signature acknowledging that you intend to replace your current policy or annuity.

When You Receive Your New Replacement Policy

• Read it carefully. The application will be attached to the policy. Make sure there are no changes in the information you gave on the application.
• If you do not understand the policy, ask the agent or company for an explanation. No agent can change policy wording, so be suspicious of any agent who makes statements contrary to what is stated in your policy.
• If you find mistakes or decide that you do not want the replacement policy, you have 20 days from the date it was delivered to you to return it to the company for a full refund of premiums. Keep the envelope so you have proof of the date the new policy was mailed to you.

For More Information