What is the difference between "group" and "Individual" life insurance

By Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS  ( www.briansbullock.com)

I have had the opportunity in my career to work with both group life insurance and individual life insurance.

Many people do not know the differences between these two types of coverage.

It is actually pretty simple.  An individual life insurance policy is issued to one person with a unique policy number.  

A group life insurance policy is issued to a group of people under one policy number.  Typically, a group policy is issued to an employer for the purposes of enabling an employee benefit for their employees.  The group policy does not specify covered insureds by individual names, but defines coverage in a provision called “Eligible Class”.  

For individual life policies, a robust application process, including medical and other underwriting happens.  Being covered under a group life policy is often without election and medical underwriting is not required (in most cases, unless election is required by the employee and they are a late applicant and for certain amounts).

These are just a few differences between a group and individual life policy.  If you have or are interested in trying to obtain an individual life policy or want to discuss group coverage in detail, send me a message via the contact form in the right column.  👉

Grandpa Joseph had a life insurance policy, I think? How can I investigate and try to locate the company that might have the policy?

 By Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS  ( www.briansbullock.com)

👉National Association of Insurance Commissioners Lost Policy Location Service

Click on the above link.  The NAIC site will then ask for verification of the following (hint: these are things you should do before using the application):

• I have made a diligent search of the deceased person’s records and property, including bank statement and safety deposit boxes. I have asked family members to identify all life insurance policies and annuity contracts that I have reason to believe covered the life of the deceased person named in the following request. The information I have provided is complete and accurate to the best of my knowledge.
• Life insurance companies will respond directly to me only if they have reason to believe they have any life insurance policies or annuity contracts in the name of the deceased, and I am the designated beneficiary or I am authorized to receive information.
• An insurance company may require additional information from me. This may include a notarized death certificate and documentation of my legal authority to request or obtain information about the deceased.
• The NAIC’s role with this request is to make it available for insurers to research.

Many times in the insurance industry, policies can be active for years and even decades.  Insurance companies can change names, be acquired or sometimes go out of business.

If you need assistance in a life policy location, please send me a message via the contact form in the right column.  👉

Do you have any life insurance questions that need to be answered?

 By: Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS (www.briansbullock.com)

Do you have any life insurance questions that need to be answered?

OR

Are you a beneficiary on a life insurance policy and you need assistance?

Please contact me for assistance.  I will walk you through all the forms and paperwork and will provide my expertise in answering your questions.  

No cost.

Click on the contact form and send me a message.

What are the costs of a poorly performing claims operations?

By Brian S. Bullock, LSSBB, FMLI, ALHC, AIRC, ACS  ( www.briansbullock.com)

👉North Carolina Fines Gerber Life Insurance Co. $1.1 million for Claims Violations 

Gerber Life Insurance Company was forced to pay over $1,000,000 in fines after they were investigated by the North Carolina Department of Insurance and found to have numerous violations.

Claims departments are often the most overlooked, yet extremely important, departments in an insurance company.  The claim time is when the insurance company makes good on their promises outlined in a policy.    

Unfortunately, there are millions of claims handled by life insurance companies every year in a careful and appropriate manner and no one hears about it.  It is cases like this that are highlighted and can erode public trust in the industry as a whole.
It is more important than ever that insurance companies have leadership that is experienced, competent and caring in place. 

"NCDOI said the examination revealed numerous claims processing violations, such as unnecessary information being requested from claimants that delayed claim payments. In one example, NCDOI said biological parents were initially denied benefits for natural born children and had to send in clothing receipts, tax returns and other unnecessary documentation to prove a “parent/child” relationship. Other claimants had to sue to recover amounts due under their insurance policies, which reduced the benefits received due to attorneys’ fees incurred. Additionally, some claims were not promptly settled under one portion of the policy where liability was reasonably clear in order to influence settlement under other portions of the policy, NCDOI said."

 A poorly operated claims department can cost a life insurance company dearly.  Regulatory fines, attorney fees, lawsuits, damage to brand are all results that can be avoided, with sound leadership, strategies and procedures.