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5 Common Reasons Why a Beneficiary Could Be Denied Death Benefits

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One of the most caring things you can do for your family is ensure financial security after your death. For most, this is done through a life insurance policy. In most cases, the death benefit is paid without any issues. Unfortunately, there are situations where the beneficiary is denied pay out, leaving them both financially and emotionally stressed.

Here we explain the most common mistakes consumers make that lead to the denial of a life insurance claim:

1) Material Misrepresentation

Once you enter into your contract/life insurance policy with the insurance company, your two year contestability periods begins. If you pass away during that time, the claims representative will conduct an investigation to ensure everything on your insurance application was truthful and that nothing was left out. If you lied or omitted on your application, the carrier has the right to refuse pay out, regardless of the cause of death.
Once you’ve survived the contestability period, the beneficiary’s risk of being denied due to misrepresentation is significantly reduced.

2) Policy Lapse Due to Nonpayment of Premiums

This is probably the most common reason for claim denial. While premium payment is required for the policy to remain in force, there are times when nonpayment of premium isn’t a sufficient reason for denying a claim. Beneficiaries who are denied for this reason should confirm with the carrier that premium-due notices were sent in a timely manner, to the correct address, and that the notice very clearly warned the insured that a policy lapse was imminent.

3) The Type of Death Isn’t Covered

Historically, life insurance carriers excluded death from dangerous activities such as skydiving, war, or scuba diving. While this is no longer the norm, many carriers will still exclude death by suicide. Many carriers now waive that exclusion once the policy’s contestability period runs out.

4)  Beneficiary Designation Not on File

When filling out the application, be sure to designate both a primary and secondary beneficiary. If no one is designated, your loved one could be denied pay out. Every policy has provisions regarding who should be paid out in this situation, as do most states. While a claim will, eventually, be paid, non-designation of a beneficiary will, at the very least, prolong the process.

5) Post-Divorce Beneficiary Changes

In many divorce cases involving minor children, life insurance is ordered by the court. The ex-spouse is to be listed as the beneficiary on the policy and must be maintained until the minor child is of age. If the parent later violates this court order by changing beneficiaries, the new beneficiary could be denied coverage.

In a perfect world, every life insurance claim would be paid out without delay or question. If you find yourself in this unfortunate situation, be sure to consult with a professional immediately. Make sure you understand your legal rights and obligations and do not accept the denial without going through the appeals process. More often than not, it’s worth the battle.

6 Life Events That Should Prompt You to Reevaluate Your Life Insurance Coverage Needs

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For many of us, life insurance never even crosses our mind until a major life event occurs. Whether you’re purchasing a new home or starting a family, our financial responsibilities will change and evolve over time. For many, this signals the need for life insurance. In fact, 41% of all life insurance purchases are life event-related. Let’s take a look at life’s most significant changes that should motivate you to reevaluate your financial situation and consider adding life insurance to your portfolio.

New Home Purchase

There are few things more exciting that collecting the keys to your new home. Living the “American Dream”, however, comes with a price. Regardless of what happens in your personal life, the mortgage company expects their payments monthly. Would your spouse be able to afford the mortgage payment, should the unthinkable occur? What about property taxes, home insurance, and regular maintenance costs? Having sufficient life coverage can help ensure your family isn’t uprooted unexpectedly.

A New Baby or Other Dependent

Welcoming a new baby into the world is a time for celebration and hope – perhaps the happiest time in a parent’s life. As you’re picking out paint colors and baby cribs, consider examining your financial health. Are you doing enough to save for your child’s future and how would your strategy be affected should you or your spouse suddenly be removed from the picture? Your children will be your most celebrated accomplishment, as well as your greatest responsibility. Start investing now to ensure they grow up in a stable environment and have everything they need to fulfill their dreams.

Whether you decide to bring a child into the world or not, it’s important to keep in mind that dependents come in multiple forms. Many adults find themselves supporting their parents as they enter their later years. Some move them into their homes, while others help pay for home health care. If you find yourself caring for a family member, life insurance can help ensure your dependents are cared for in your absence.

Tying the Knot

When you tie the knot, your life insurance needs shift enormously. You’ve agreed to share each other’s financial responsibilities and support each other through the ups and the downs. Yet a staggering 35% of Americans express regret that their spouse doesn’t have a life insurance policy. Investing in life insurance offers the peace of mind that he/she is protected in the event of your untimely death.

Open a New Business

Once you become a business owner, you’re exposed to a whole new set of financial commitments. When embarking on such a major life change, it’s important to consider who is at risk were you to pass on unexpectedly. Many partnerships build life insurance into their business strategy, with the agreement that one would buy out the deceased owner’s share of the enterprise upon the co-owner’s death. This policy ensures your family, your business, and your employees are protected, should the unthinkable occur.

Change in Marriage Status

While no one enters into a marriage expecting it to end in divorce, many couples find themselves in a position where divorce is the most healthy option for everyone. Life insurance is an effective way for parents to ensure their children are cared for, even after they’re gone. This is particularly effective in situations where one parent pays child support to their ex, to assist in covering the day-to-day expenses of raising a child.

Estate Planning

Consumers who have an estate large enough to be taxed, either federally or on the state level, should consider the tax benefits of adding a life insurance policy to their portfolio. When set up properly, a life policy could help provide the funds needed to pay down estate tax bills. Many families are forced to sell assets to pay for outstanding medical bills, settlement costs, and estate taxes; a step that could be avoided with the proper life insurance coverage.

Always consult with a licensed insurance professional who can assist in the assessment of your current needs, as well any long-term risks and goals.

Purchasing life insurance is a means towards financial piece of mind. And, while few constantly dwell on an inevitable future, we all have considerations now and then about how things will be different after our departure. The events mentioned above, either joyous or more difficult, often cause a person to pause and think about where things are headed in their lives. If you are approaching one of the aforementioned events, or a similar life decision, this can be the perfect time to look into what it will take to purchase a life insurance plan. Contact an agent and see what they can do for you today.

Should I Purchase Life Insurance for My Child?

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Families have long debated whether or not life insurance for children is a worthy investment. Some advisors and agents believe it’s a smart financial move, while others believe the cons far outweigh the pros. The one point that most agree on – purchasing a life insurance policy for a child should be secondary to more critical investments. If you’ve built an adequate emergency fund, invested in a college fund for your child, have a solid retirement plan, and life insurance on yourself, then you can begin thinking about investing in a life policy for your child.

Let’s take a look at the pros and cons and let you decide for yourself.

Your Options

If you have a child under the age of eighteen, there are two types of policies you can purchase:

1) Rider on your own life insurance policy – When purchasing a term life policy for you or your spouse, ask your agent if the carrier offers a rider that would cover your minor child. This rider offers an affordable option for parents looking to buy a small term policy for their children. Coverage amounts are usually limited to $20,000 or less, with term limits of 10, 20, or 30 years.

2) Permanent policy – Your other option is to purchase a permanent policy on your minor child. While these policies are still typically for a small amount, it does extend the option for a little more in coverage. Policy coverage is generally limited to $50,000 or less, with coverage provided for a lifetime, or as long as the premium is paid.

Pros and Cons of Life Insurance for Children

Insurability for the Future

Pros: Many parents choose to purchase a life policy to protect their children later in life. Everything can change on a dime, and none of us really know what the future holds for us. Purchasing a permanent life policy can help protect against those unknowns, ensuring your child still has coverage, even if he/she is diagnosed with a serious disability or illness later on down the road. Not only does this ensure coverage later in life, it locks in the cost at a much lower rate. If your family history puts your child’s future insurability at risk, purchasing a life policy at a young age could prove beneficial.

Cons: While it’s impossible to know what the future will hold for your child, medically or otherwise, the chances of them becoming uninsurable are very small. Although family history will play a factor in insurability and premium, underwriters will also consider medical advances, making it easier to purchase a policy with chronic conditions such as diabetes and cancer. One should also remember that it’s very difficult to determine exactly how much coverage your child will need in the future.

Death Benefits

Pros: While your child doesn’t likely have any income to replace should they pass away, the death benefit is a great way to cover final expenses and any unpaid medical bills. With the proper rider, your child’s policy could even cover medical treatment prior to their passing.

Cons: If death benefits are your primary reason for considering a life policy for your child, there are more affordable ways to ensure these expenses are covered. Consider adding a rider to your own policy or, if this option isn’t available to you, consider purchasing a small, low-cost term policy instead. $10,000 should be enough to cover final expenses and the premium is much more affordable than a permanent policy.

Accumulated Cash Value

Pros: Unlike term insurance, permanent life policies accumulate tax-deferred cash value. This cash value can be used for future planning, such as a down payment on a new home or college tuition. For many, this is an effective way to help contribute to their child’s savings.

Cons: While many consumers find benefit in utilizing the cash value on a permanent life policy, there are some downsides as well. It’s important to keep in mind that policy loans and withdrawals will reduce the overall death benefit. A loan, coupled with annual policy fees, could potentially cause the policy to lapse, if not closely watched. If saving for your child’s future is your primary goal, consider purchasing a small term policy and putting the rest into a savings account. When properly managed, the savings account could yield higher results and offer you greater control over its assets.

Before You Buy

Before purchasing a life policy for your child, take a close look at your current financial situation and goals for the future. Meet with a trusted representative, who can help you paint the big picture, ensuring both your child and finances are protected.

5 Common Causes of High Blood Pressure You May Not Know About

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High blood pressure, also known as the “silent killer,” is a medical condition that affects 75 million Americans. That’s nearly 1 in 3 adults! Despite the medical community’s warning of potential side effects, only 54% of those with high blood pressure have it under control.

High blood pressure got its nickname because many people do not realize they have it, as it has very few symptoms or warning signs. When left uncontrolled, this prevalent condition increases the risk of stroke and heart disease, two of the leading causes of death amongst Americans.

Fortunately, there are a number of things you can do to keep your BP in check. No smoking, decreased alcohol consumption, healthier eating, and increased physical activity are often effective ways to lower your blood pressure. The following are causes of high blood pressure that many people are unaware of.

Sleep Apnea

According to the Journal of Hypertension, untreated obstructive sleep apnea (OSA) is a leading cause of high blood pressure. According to a recent study conducted by the Sleep Disorders Center at The Ohio State University Wexner Medical Center, patients with both high BP and OSA realized a significant reduction in their BP when consistently treated for their sleep apnea with a continuous positive airway pressure (CPAP) machine. The study went on to conclude that untreated sleep apnea could be why many patients see little result, despite being on multiple medications. If you experience such symptoms as daytime drowsiness, loud snoring, abrupt nighttime waking, and dry mouth in the morning, have your physician monitor your blood pressure carefully.

Heavy Metal Toxicity

There are numerous studies that suggest that heavy metal poisoning can result in high blood pressure. Mercury, which is often found in fish, drinking water, and older teeth fillings, and lead paint, often interfere with the cardiovascular system.

Vitamin D Deficiency

According to a 2014 meta-analysis published in The Lancet Diabetes & Endocrinology, just a 10% increase in vitamin D can reduce your odds of hypertension by 8.1%. If you suspect you might be vitamin D deficient, discuss this matter further with your physician. Vitamin D levels can be measured with a simple blood test.

Medications 

Believe it or not, there are some medications that actually cause an increase in blood pressure. While it is best to consult with your physician and/or pharmacist, the following are a few medications known to increase blood pressure.

  • Corticosteroids, such as Prednisone
  • Antidepressants, particularly venlafaxine (Effexor) and MAO inhibitors (Nardil, Parnate)
  • Non-steroidal anti-inflammatory medications such as aspirin and ibuprofen
  • Benzodiazepine anti-anxiety drugs, such as Valium, Ativan, and Xanax
  • Etidronate (Didronel), used to treat osteoporosis
  • Nasal decongestants, such as phenylpropanolamine
  • Migraine medications, such as Imitrex
  • Asthma medications/bronchodilators such as ephedrine and epinephrine
  • High estrogen levels, which can cause edema, have also been linked to high blood pressure

Thyroid Issues

Recent studies have linked hypothyroidism (an under active thyroid) and high blood pressure, often resulting a higher BMI and triglyceride levels. If you have experienced such symptoms as depression, increase cold sensitivity, changes in menstrual cycle, sudden weight gain, and/or trouble losing weight, be sure to address these issues with your doctor. Hypothyroidism is more common in females and can be diagnosed with a simple blood test.

Understanding and treating high blood pressure is not often a difficult task. Recovering from its untreated effects can be a different story. Have yourself checked by your doctor and work to make healthy changes, whenever possible. Don’t let the “silent killer” sneak up on you.

7 Steps to Filing a Life Insurance Death Benefit

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The loss of a loved one is always a difficult and stressful time. In addition to going through the stages of grief, we’re often faced with making difficult decisions regarding the deceased’s burial. Bills must still be paid and, oftentimes, financial and legal issues must be addressed.

Fortunately, you and your loved one set up a life insurance policy to help you get through this distressing time. While a part of you might feel uncertain about filing a death benefit claim, keep in mind that the purpose of this policy was to help you cope as you get accustomed to this new normal. The expenses that emerge shortly after a loved one’s death are often significant. Surprisingly, many individuals abandon their loved one’s life insurance policy, leaving over $1 billion in unclaimed life insurance benefits. Don’t put you and your family through additional unnecessary turmoil. File for the benefits due to you.

While the specifics vary slightly from company to company, below are the next steps you must take to file a claim.

1) Find a Copy of the Policy

Hopefully, you’re aware of where the deceased’s life insurance policy is located. If not, nightstands, bookshelves, filing cabinets, and desks are the most common places for storing important papers.

Tip: In many states, safety deposit boxes are sealed immediately after one’s death. To avoid settlement delay, encourage loved ones to avoid storing their policy in a safety deposit box.

2) Check to Ensure There Aren't Any Other Policies

Many employers offer life insurance, accidental death, and dismemberment riders as part of their benefits package. Check with your loved one’s human resources to see if there are any additional policies you weren’t aware of.

Surviving family members are also often entitled to a small burial benefit (or monthly survivor benefits) through Social Security. Additionally, if your loved one was traveling when he/she passed, check with a representative from the credit card that was used to make travel arrangements.

3) Notify the Agent

As soon as you’ve located the policy paperwork, you’ll want to notify the insurance company. If an independent agent sold you the policy, consider contacting them directly. She can act as an intermediary with the insurance company, ensuring the process goes smoothly. If the deceased purchased a group life policy through their employer, the human resources department can assist you in filing your claim.

4) Obtain Copies of the Death Certificate

A certified copy of the person’s death certificate is required to file a death benefit claim. This can be obtained within a few weeks of their death, through the vital records department in the state in which he/she resided. The funeral director can assist you in acquiring this information.

5) Request Claim Forms From Insurance Company

Request a copy of the claim forms needed to file for benefits. Review the paperwork carefully and be sure to gather any additional paperwork that may be required.

If you’re unable to fill out the forms or simply do not understand portions of the paperwork, ask your estate attorney or insurance agent for assistance. Each beneficiary will have forms to fill out and sign.

6) How Do You Want Benefits to Be Paid?

There are typically multiple payment options available to beneficiaries. Check with your financial advisor, insurance agent, or estate attorney regarding these options. They can help identify the best possible payout for your unique situation.

7) Submit Completed Forms to Insurance Company

Return your completed forms, along with a certified copy of the death certificate and any other required paperwork, via certified mail or with a request for return receipt. Most states require life insurance benefits be paid within a certain amount of time, but the number of days vary from a few weeks to a few months.

If you’re unsure if your loved one had a life insurance policy, MIB’s policy locator service may help you find the information you need. The American Council of Life Insurers (ACLI) is also a great resource for finding missing information.

Is It Possible to Obtain Life Insurance After a Cancer Diagnosis

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Years ago, receiving a cancer diagnosis signaled the beginning of the end. Recent medical advancements, however, have lead to more positive outcomes, turning many victims into survivors. With almost 14 million people in the United States still facing this diagnosis, though, many of us are aware of the unpredictable nature of such a disease. A cancer diagnosis reminds us all that life is unpredictable, forcing us to face the possibility of death at any moment. The welfare of our families becomes top priority, and shopping for a life insurance policy suddenly feels urgent.

But, can one even obtain a life insurance policy after a cancer diagnosis? Many assume the answer is “no.” While navigating the application process may be a little challenging and time-consuming, there are reasonable options available. If you’re considering shopping for life insurance, don’t let your cancer stop you from getting the protection you need.

What is Underwriting Looking For?

Most insurance companies have access to the National Cancer Institute’s “Surveillance, Epidemiology, and End Results” (SEER) database. This database offers information on cancer patients based on tumor locations, diagnosis stages, initial treatment plans, follow-up procedures, demographics, and morphology. This, coupled with information gathered from you personally, will help the underwriter in assessing the risks.

Potential insurers will request the following information:

  • Diagnosis date
  • Type of cancer
  • Treatment plan
  • Length of time in remission
  • Stage and grade of cancer
  • Tumor mass
  • Lymph node involvement
  • Start and end date of treatment
  • Current and past medications

While most insurers require applicants to be cancer-free for at least five years, this is not a hard and fast rule. In some cases, if the prognosis is good, patients have become eligible for a policy before completing their treatment plan.

Underwriting for Specific Cancers

There are several forms of cancer that insurers will closely consider when reviewing an application:

Melanoma – Melanoma is a more aggressive and dangerous form of skin cancer, resulting in the majority of skin cancer deaths. The insurer’s concern is this form of cancer’s tendency to metastasize and spread throughout the lymphatic system and organs. As with basal cell carcinoma and squamous cell carcinoma, patients with no complications during removal, and who have been cancer-free for one to two years, are often eligible for an insurance policy. Patients whose cancer required chemotherapy and/or radiation as part of their treatment plan could have to wait as long as ten years before obtaining a policy.

Breast cancer – Underwriting will ask breast cancer survivors a series of questions to determine eligibility. The longer the applicant has been in remission, the better their chances of getting approved.

Prostate cancer – Prostate cancer survivors are often approved for a life insurance policy shortly after treatment, assuming they are willing to pay at a higher rate. Underwriting will examine the applicant’s Prostate Specific Antigen (PSA) levels and Gleason score. The Gleason score determines the likelihood of the cancer spreading. This, coupled with the number of years cancer-free and the type of treatment a patient has undergone, will all be factors in determining both eligibility and rates.

What Every Cancer Patient Should Know to Ensure Eligibility and Lower Life Insurance Rates

  1. Keep all medical records together and organized. Be sure to include initial diagnosis and pathology report, as well as the prescribed treatment plan.
  2. Leave the treatment plan to the professionals. WebMD is filled with some valuable information. It does not, however, make you a doctor. Follow your doctor’s treatment plan.
  3. If possible, wait until you are in complete remission and your health has stabilized.
  4. Don’t apply for the first insurer that offers you a rate quote. Find a trusted life insurance agent that can help you shop around. Each insurer has their own set of underwriting guidelines; your insurance professional can help sift through your options and help you find the very best policy for your situation. They can also help you negotiate with potential insurers and educate you regarding additional options.
  5. Consider a graded policy, which offers increased death benefits, as you age.

Have you applied for a life insurance policy post-diagnosis? If so, what challenges have you faced? What was the end result? We would love to hear your story in the comments below.

Does Family History Really Affect Life Insurance Premiums?

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Once you have applied for life insurance, an underwriter will review your application to determine eligibility and identify your rate class. There are several factors the underwriter will consider during this process. They will include: age, current health status, extracurricular activities, and family history.

Yes, that’s correct, your family history does play a factor. You could be in the greatest of health, but still be affected by a family history of poor health. If your family’s health history is less than stellar, this probably raises a lot of questions for you. The purpose of today’s blog is to answer those questions. So, let’s get started.

Why Do They Care About My Family’s Health?

Modern advances in medicine have revealed that many disorders occur more frequently in some families than others. If an immediate family member (father, mother, and/or siblings) have been diagnosed with a serious medical condition, the underwriter will delve a little deeper into their history post-diagnosis. Depending upon the severity, as well as a number of other factors, you could be facing higher policy premiums. In extreme cases, an applicant could be denied coverage.

What Are They Looking For?

While there are a number of health conditions your underwriter will consider, two in particular raise the most concern. Dubbed “The Big Two,” a family history of heart disease or cancer will send up red flags to your life insurance underwriter. Both have been linked to early mortality and are the leading causes of death in the United States. If several family members have been diagnosed with either condition before the age of 60, you will likely be placed in a higher rate class, resulting in a higher premium.

In addition to “The Big Two,” a family history of the following diseases/medical conditions could result in higher premiums:

  • epilepsy
  • cystic fibrosis
  • eye disorders
  • deafness
  • motor neuron disease
  • kidney disease
  • blood disorders
  • liver disease
  • Alzheimer’s disease
  • musculoskeletal
  • bowel disorders
  • Tay-Sachs disease
  • neurological/psychiatric
  • PKU
  • drug dependency
  • respiratory
  • alcoholism

While it is possible that your family’s health history could result in a denial of coverage, do not let that discourage you. The Vista Insurance Group specializes in helping high-risk clients obtain the coverage they need.

What If I’m Adopted?

If you are adopted, finding out your family history could prove difficult, if not impossible. You will not be penalized for this. Note this information on your application and the underwriter will work solely off of your medical history.

Can’t I Just Leave That Information off My Application?

Falsifying or omitting information on your application is considered insurance fraud. If discovered, you could face probation, community service, fines, or even jail time. And, since life insurers have access to MIB (Medical Information Bureau) reports, it’s highly likely that they will uncover the truth.

While most insurance companies will not take the time to prosecute in these cases, the lies will have consequences. It can slow down the underwriting process or, in some cases, cause them to decline the application altogether.

Should you make it all the way through the underwriting process and the policy is issued, you and your family are still at risk. Before paying out, insurance companies investigate death benefit claims. If your lies or omissions are discovered, the insurer has every right to deny or reduce payout to your beneficiaries.

Does Every Insurance Carrier Follow the Same Set of Rules?

No, each insurance carrier follows their own set of underwriting guidelines. Some may place more emphasis on an applicant’s parents’ medical history, while others place equal importance on both parents and siblings. One may deny coverage when both parents have a history of kidney disease, while another may only qualify you for a Standard rating.

If members of your family have been diagnosed with a serious medical condition, the best thing to do is be honest and up-front. The Vista Insurance team is here to assist you in finding the very best coverage at the most affordable rate. We have built relationships with a number of reputable carriers and are here to ensure you obtain the coverage you need for your unique situation.

Will I Qualify for Life Insurance After Bankruptcy?

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By now, you are probably aware that your credit score follows you, affecting insurance rates and your ability to lease an apartment. Oftentimes, it’s even part of the job qualification process. It is safe to assume, then, that a bankruptcy would negate your chances to obtain life insurance, right? The short answer – wrong. While your life insurance underwriter will consider your bankruptcy when reviewing your application, it does not automatically disqualify you.

Before we delve into the specifics of bankruptcy and life insurance, let’s talk about WHY this is even a concern for your underwriter.

Heightened Risks Associated With Bankruptcy

The bankruptcy process is long and arduous. It is a stressful time. One that forces us to reevaluate both past and current decisions and calls for a restructuring of virtually every aspect of our lives. From an underwriting standpoint, this is a valid concern, as stress and anxiety directly affect one’s overall health. As a result, some consumers battle depression and thoughts of suicide, both equally concerning to a life insurance underwriter. As a consumer, it’s important to remember that most life policies contain a suicide clause, barring death benefit payout should the insured commit suicide in the initial years of the policy.

When applying for a new policy, the insurer faces a great deal of upfront costs. From the medical exam to underwriting and agent commissions, it takes several years of premiums to recoup those fees. Therefore, the insured’s financial stability is a consideration. If they believe you to be financially unstable, the insurance company will not want to take on that risk, recognizing there’s a chance they may never break even on your policy.

What Steps Should I Take When Applying for Life Insurance After Bankruptcy?

When some of the major carriers chose to shy away from insuring individuals with a bankruptcy on record, a number of insurers seized this opportunity, tapping into a new pool of risks. Assuming you meet the rest of the underwriting guidelines, you should, hopefully, have several options available to you.

There are a few things you should keep in mind before starting the process:

– As a general rule of thumb, wait at least one year after your bankruptcy has been cleared, discharged, or settled. This is particularly true when filing Chapter 7.
– Work with an independent agent. Their duty is to guide you through the process, which starts with identifying the policies that best fit your unique situation and needs.
– Be upfront with your agent from the start. Provide them with information regarding your bankruptcy including: clearance date and any medical issues that might have contributed to your decision to file.
– Have a clear understanding of what your current budget is and how much coverage you and your family need.

Keep in mind that a bankruptcy can follow you for seven to ten years. So do not assume that, because it has been three years, it is irrelevant to potential insurers.

How Will Bankruptcy Affect My Current Life Policy?

If you already have a policy in force, you’re probably wondering how filing could affect that policy. The answer depends upon what type of policy you have in force.

If your in-force policy is a term policy, filing for bankruptcy should not affect the policy at all. As long as you are able to make your premium payments on time, the policy will remain in force.

If you own a permanent policy, things may get a little trickier. If your policy has been in force long enough to build cash value, there is a possibility that those assets could be assessed. We recommend that you seek the advice of a licensed attorney practicing in the state in which you reside, as bankruptcy rules vary from state to state.

If bankruptcy (or any other issues) is a part of your past, seek the assistance of a licensed independent life insurance agent. At Vista Life, we work with a number of life insurance carriers, ensuring the best possible outcome for your particular situation. If you have any further questions, do not hesitate to contact us at 866-450-2424 or via email.

Life Insurance for Those Living With HIV

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Those individuals living with HIV have, more than likely, found the life insurance market difficult and limited in scope in the past. Fortunately, this reality is beginning to change. More recently, insurance agencies have begun offering greater coverage options for HIV positive customers. With more powerful and effective treatment opportunities becoming available and the overall life expectancy of HIV patients extending, many companies are creating plans to effectively cover these at-risk individuals.

With more than one million Americans currently living with this disease, it is impossible to ignore this segment of the population any longer. The affected individuals are no longer being categorized as having a life expectancy too short to be offered coverage. And, as with most medical and social advancements, insurance companies are evolving to offer the insurance coverage these individuals need and deserve.

When AIDS and HIV first became a National, as well as International epidemic, most insurance companies saw affected individuals as too risky to cover. Indeed, the initial mortality rates were often so high and life expectancy so short, that insurance companies couldn’t properly calculate the risks and reasonable pricing needed to provide coverage. If coverage was available, it was often priced too far out of an individual’s budget. But, with advancements in the effectiveness of the pharmaceuticals available and the overall quality of life of HIV positive individuals improving rather dramatically, insurance companies are re-tooling their business plans to give even more coverage.

Still, you may be wondering what coverages are really available. Is my case unique? What can I expect to pay for a premium? Where do I even begin? Call us today so we can begin to lay out the available plans. At Vista Life, we look to provide the best coverage for each customer.

Our team will sit down with you and discuss options for coverage and costs and can design the right policy for you personally.

The Surviving Spouse’s To-Do List, Part 4: Change of Ownership

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Losing your spouse is one of the most difficult setbacks to overcome. Navigating through the different stages of grief leaves many feeling alone and afraid. This leads to vulnerability and, all too often, the widow(er) becomes the victim of crooks and/or the pressure to make decisions they do not fully understand.

Today, we’re sharing with you Part 4 of our 6-part series: The Surviving Spouse’s To-Do List. Each individual’s situation is unique, so this is meant to serve as a guideline. We urge you to wait before making any life-altering decisions and, of course, seek the advice of a trusted professional when it comes to insurance or financial matters.

Transfer of Ownership

If you are like most married couples, you and your spouse accumulated some assets together throughout the years. You likely also have several bills and policies that are in both your names. You will need to remove your spouse as a named owner/insured, when getting your affairs in order. Again, we urge you to seek legal advice before making any big changes, particularly before the estate has gone through probate. One wrong move could lead to hefty tax implications later.

Below are a few items that should be checked for ownership:

Motorized Vehicles, Recreational Vehicles, & Boats

If there are any vehicles or other assets titled in your spouse’s name only or, if you are jointly listed, they may need to be re-titled out of your spouse’s name. Contact the Department of Motor Vehicles in your state for rules specific to your region.

Credit Cards

If your deceased spouse held credit cards in his/her name only, those cards should be canceled. Typically, those bills will be paid out of the estate.

If you were listed jointly on a credit card, notify the company of your spouse’s recent passing. Ask them to remove her/his name from the account. Payments on these accounts should be made on time to ensure your credit rating doesn’t suffer.

Pro tip: Some consumers experience difficulties when trying to get a new credit card in their name. This typically occurs when all or most of the credit was listed under the spouse’s name only. When applying for a new card, let the lender know that you shared these accounts with your spouse. Do so even if your name was not listed on the account.

Bank Accounts

Joint bank accounts automatically pass on to you, as the surviving spouse. Notify the bank of the recent changes and ask them about the process for retitling and changing the signature card on the account. If you own any stocks or bonds, be sure to notify your financial advisor of your spouse’s passing.

If you spouse held any bank accounts in his/her name only, those assets will have to go through the probate process. Trust accounts are the exception to this rule.

Insurance Policies

Hopefully you have been able to locate the paperwork on any household insurance policies. Auto and homeowners policies will need to be revised to list your name only. Many homeowner insurers require a copy of the death certificate, before making any changes.

If you and your family are currently covered under your spouse’s employer-based medical coverage, notify the health insurance representative immediately. In most instances, you should be eligible for continued coverage through COBRA for up to 36 months. There is typically an increase in monthly premium, and you must remain up-to-date on your premiums to continue with this coverage.

Life insurance policies should be reviewed for any necessary changes. If your spouse was the listed beneficiary on a policy, contact your insurance representative to have that modified as soon as possible.

Pro Tip: Some employers allow the surviving spouse to continue with their current policy. Since your current premium is significantly less than COBRA, check with your spouse’s employer to see what their specific rules are.

Safe Deposit Box

While the rules vary from state to state, most safe deposit boxes require a court order to open, when rented in only one name.

Will

If your will provides for property to pass to your spouse, it should be updated. You may want to contact your estate planner for assistance.

General Finances

Like the credit cards, any outstanding debts/bills shared by you and your spouse should be kept in good standing. Anything in your spouse’s name should only be passed on to the executor of the estate, to be paid by the estate.

Do not immediately make permanent significant financial decisions, such as selling your home, moving or changing jobs. You will need some time to consider your situation before you can make these decisions responsibly. If at all possible, do not rush into a decision you may later regret.

As previously mentioned, we urge you to take your time making any significant decisions. Take a moment to grieve, review your current financial situation, and consider where you would like to go, moving forward. Your primary focus should be on healing from this devastating loss.

Stay tuned for Part 5, where we address the next items on your to-do list. Don’t hesitate to contact us with any questions, at 1- 866-450-2424.