The Order of United Commercial Travelers of America
632 North Park Street, P.O. Box 159019, Columbus, Ohio 43215-8619
Telephone (614) 228-3276, Wats (800) 848-0123, FAX (614) 228-1898
IMPORTANT NOTICE TO APPLICANTS REGARDING REPLACEMENT OF LIFE INSURANCE AND ANNUITIES
1. You are being urged to purchase new life insurance and discontinue or change your existing life insurance. Before you make a final decision, there are several things you need to be aware of.
2. It will be to your advantage to obtain the advice of your present life insurance company regarding the proposed replacement or change of your existing life insurance. Such information may be requested through the agent who sold you the insurance or directly from the home office of the insurance company. You would want to do this even if the proposed replacement or change is suggested by an agent who represents the insurance company that issued your existing insurance.
3. It may not be to your advantage to cancel, surrender, convert or amend your existing life insurance in favor of new life insurance, whether issued by the same or a different insurance company. Some of the reasons it may be disadvantageous to you are:
(a) Generally, the initial costs of life insurance policies are charged against the cash value increases in the earlier policy years, so the replacement of an old policy could result in the policyholder sustaining the burden of these costs twice.
(b) Generally, the incontestable and suicide clauses begin anew in a new policy. This could result in a claim being denied by the company under a new policy which would have been paid under the old policy.
(c) Existing policies may have more favorable provisions than new policies in such areas as settlement options and disability benefits, loan interest rates (if any) and reinstatement provisions.
(d) Your present insurance company often is willing to make a desired change on terms more favorable than if you replace your existing insurance with new insurance in either the same or a different insurance company.
(e) The amount of the annual premium under an existing policy may be lower than that under a new policy having the same or similar benefits.
4. For the same reasons it may be to your disadvantage to put an existing policy on reduced paid-up or extended term insurance, or to borrow against its loan value beyond your expected ability or intention to repay in order to obtain funds for premiums on a new policy.
5. There may be situations when a replacement is to a policyholder's advantage. Your best course in every case is to secure the comments of your present insurance company before arriving at a decision in this important matter.
I hereby acknowledge that I received the above "Important Notice to Applicant Regarding replacement of life insurance or an Annuity."
Signature of Applicant Date
Signature of Agent Date
REPL-L-OR-00 White Copy: Home Office – Yellow Copy: Applicant – Pink Copy: Agent