TruAssure Insurance Company

Frequently Asked Questions About Life Insurance
Q)	*Do I need life insurance?*
A)	Life insurance provides another source of funds to help your loved ones maintain their standard of living in the event of your premature death. If you passed away tomorrow, would your family have to move out of their home? Sell their possessions? Drop out of school? Could they pay for your final expenses, including burial and taxes? Unfortunately, approximately 12% of U.S. households would immediately have trouble meeting everyday living expenses, and another 15% would have difficulty keeping up with expenses after several months if the primary wage earner died¹. If you have a spouse, dependent children, an aging parent or another loved who relies on you for financial support, then you should consider life insurance. Even if you do not have dependents, life insurance can still protect your loved ones from having to assume the economic burden of your final expenses or outstanding debt. Life insurance was the number one source of financial assets or income that Americans expect to use to help pay bills and to maintain their life style if the primary wage earner dies¹

Q)	*How much life insurance do I need?*
A)	Some experts recommend that you have 5-8 times your annual gross income in life insurance. At a minimum, a combination of your life insurance and savings should a) fully pay off your mortgage, b) fully pay for all of your funeral and burial expenses, and c) fully pay off all of your outstanding debts, including car payments, credit cards and health expenses not covered by insurance. Other points for consideration: Will your spouse be in a position to work/return to work? What child care costs will be involved? If you are renting your home, will your spouse be able to afford the full rent payment? Will your spouse be able to afford your current expenses, including food, clothing, utilities, home maintenance, auto maintenance and repair and health insurance? Do you anticipate providing for your children’s college education? The projected total cost for four years at a 4-year public college is more than $80,000 for a child beginning college in 2010. Will your spouse be left with enough income at retirement? Spend some time reviewing your total assets and expenses and discuss your goals and objectives with your spouse. A qualified financial professional can assist you in determining the best balance between the benefit your beneficiaries will receive and the premium you will pay.

Q)	*Can I apply for individual life insurance through TruAssure*
A)	Unfortunately, TruAssure only offers group insurance coverage through your employer or some other qualified organization. If your employer does not offer TruAssure life insurance at this time, ask your Human Resources department to contact us at 1-800-414-4988 and we will be happy to provide them with information on TruAssure’s products.

Q)	*My employer offers TruAssure life insurance coverage. Should I purchase life insurance through my employer or find my own policy?*
A)	There are many types of life insurance policies available and a qualified financial professional, looking at your specific situation, can best advise you about which type(s) of policy will fulfill your needs. However, the group term life insurance offered through your employer is an affordable and convenient way to provide protection for your family. Group term life insurance is generally the least expensive type of insurance because you build no cash value in the policy and you get the advantage of a group rate. In addition, group insurance up to a specified amount is available without having to prove that you are healthy as long as you enroll when you are first eligible. The policy provides protection for the “term” of the policy, which usually ends when your employment is terminated. If your employment is terminated, you can convert the group policy to an individual whole life insurance policy without providing evidence of insurability.

Q)	*How do I designate or change my beneficiary(ies)?*
A)	You can use a TruAssure Beneficiary Designation Form to change your beneficiary(ies) at any time. Complete the form and submit it to your Human Resources office. The employee is always the beneficiary for dependent life coverage. You generally should choose a specific individual or individuals as your beneficiary(ies) so that the policy proceeds can be paid directly to him/her and the potential pitfalls and expense of the probate process are avoided. If you do not designate a beneficiary and you have no survivors or if you designate your estate as your beneficiary, the life insurance proceeds will be paid to your estate and will therefore be subject to probate. Even if you have a will, you must designate a beneficiary for your life insurance policy. A beneficiary can typically be either a primary beneficiary (the person or persons who you have chosen to receive the benefit first) or a secondary or contingent beneficiary (the person or persons who will receive the benefit if the primary beneficiary has predeceased you). It is usually recommended that you choose both primary and contingent beneficiaries. Some points to remember when choosing beneficiaries: Most people will name a family member as their beneficiary but it is not required. You can opt for the benefit (or a percentage of the benefit) to go to a friend, a charity or a trust, although the trust should be an actual legal document drawn up for you by a lawyer. You can name as many beneficiaries as you want. If you choose more than one beneficiary, then you should also choose how the proceeds should be divided. Allocate the money by percentages and make sure that the total adds up to 100% (i.e.: 33%, 33% and 34%). If you do not note allocation percentages, the benefit will be divided equally among all of your primary beneficiaries. Be sure to note whether each person is a primary or contingent beneficiary. It is very important to include your relationship to the person(s) you have chosen. Many people share the same name and “John Doe” could be your father or your brother or your next door neighbor. You may not want to name minor children as your beneficiaries since they will need a legal guardian appointed by the court to manage their money. A trust is often a good alternative to provide for minor children (or any legally incompetent beneficiary). Make sure that you date each Beneficiary Designation Form so that there is no doubt what your final wishes are.

Q)	*How do I file a claim for benefits?*
A)	A Life Insurance Claim Form can be obtained from this website or from the employer holding the policy. Complete the claim form and forward it to TruAssure, along with a notarized copy of the Death Certificate and a copy of the employee’s previous year’s W-2 form. Make sure that a Physician completes and signs their portion of the form. If the death was due to an accident or injury, we will also need a copy of the Police Report, a copy of the Autopsy results including Toxicology results and any newspaper articles or the obituary. Medical records may be requested if the death occurred within 2 years of the insured’s coverage effective date.

Q)	*How do I apply to waive my life insurance premium because of a disability?*
A)	With many TruAssure life insurance policies, if you become totally disabled while the policy is in force you may be eligible to continue your life insurance coverage without paying premium for a period of time that you are disabled. If you feel you are entitled to have your life insurance premium waived, complete a Request for Waiver of Life Insurance Premium Form (available on this website or from your employer) and submit it to TruAssure. Both your Physician and your employer must complete and sign their portion of the form. TruAssure will determine if you are eligible based on the provisions of your policy.

This FAQ is intended for general informational purposes only. You should consult the appropriate financial professional about your specific situation and financial needs.

¹ Life Insurance Ownership Study, LIMRA International