Beneficiary Changes
Define Irrevocable Beneficiary
A beneficiary that cannot be removed from a Life Policy without their signed consent; they have an invested interest in the insured.
List the only policy types that may be eligible to earn dividends
Whole life and some older Term
The form required to change a policy to Extended Term or Reduced Paid Up Insurance
Supplemental Application for Non-Underwritten Changes
When is a Policy Surrender in Full form required?
With every Surrender request
The only acceptable signature method for a Reinstatement Application
'Wet' signature
This exists if the beneficiary would incur a financial loss or other hardship in the event of the insured's passing.
Insurable Interest
List two of the factors that impacts the amount of dividend earned on a policy
Age, Gender, Risk Classification, Policy Duration, Mortality Tables
The non-forfeiture option that uses the cash and dividend values to purchase a policy with the same death benefit for a specified duration of time
Extended Term Insurance/ETI
The one plan code that CANNOT be surrendered
CTPU25 (child rider certificate)
A Reinstatement Application must be signed by
Policy Owner, Insured (if over 18), Parent/Guardian (if Insured is under 18 and owner is not parent/guardian)
A request for ______ _______ on a Beneficiary change will generally not be accepted. If accepted, AFLIC will only allow one to be listed; all the others must be listed as percentages.
specific amount
What is special about any disbursement check when there is Joint Ownership?
The check is split into 2 equal checks made out to each owner.
The only benefit/rider available once a policy is changed to Extended Term/Reduced Paid Up Insurance
Accelerated Death Benefit/ACDB
BONUS: Requests to exercise are handled by
Which states cannot provide a signature on a Surrender form via DocuSign?
Iowa, Oregon, Texas and Wisconsin
BONUS: What must be received with it if the form CAN be DocuSigned?
Requirements to reinstate
Reinstatement Application, Authorization to Obtain and Release Information, Premium plus interest
Nikole names her son, Dylan, per stirpes, as the Primary Beneficiary. What does this mean for how the proceeds will be paid?
If Dylan predeceases Nikole, his proceeds will be divided equally among all of his surviving descendants.
When is interest credited on Accumulate at Interest dividends?
Either at the time of withdrawal or the end of the policy year
This policy type continues to earn cash value and dividends and loans are allowed
Reduced Paid Up
The Policy Surrender in Full form must be signed within ___ days of being received.
90 days
Reinstatement is not allowed if (name one reason)
Policy manually placed on ETI/RPU, Policy terminated for Max, Policy surrendered by PO request, Beyond reinstatement deadline
A Change of Beneficiary form signed on January 27, 2025 can be accepted until __________.
July 27, 2025
BONUS: If we had received the form on May 10th, 2025, what would need to be sent after the change is processed?
What does it mean if a policy is about to terminate for Maximum Indebtedness?
The outstanding loan balance has exceeded the available cash value in the policy.
BONUS: What is needed to prevent termination?
Difference between expiry and maturity
Expiry = Policy ends at a specified date with no death benefit
Maturity = Policy ends at a specified date with cash value; cash value is paid to the Policy Owner
What is required for Surrender requests for policies with residence in Indiana, Iowa, Massachusetts, and North Carolina?
State Specific Tax Withholding Form
A Reinstatement Application is only acceptable if received by AFLIC within
30 days following signature date