When a policyowner contacts you about surrendering their policy, the first step is to understand why they’re making this request. What sounds like a simple surrender request may be a situation where the customer (or their family) could benefit from other options. The first step is to determine whether the insured is living or deceased, as this will guide the entire conversation.
If the insured has passed away
If the insured is deceased, the request should be handled as a death claim, not a surrender. Death benefits are paid to beneficiaries and are typically not taxable, making this the most appropriate and beneficial path for the customer’s family.
Agent Action: Contact the Claims Department at 800-732-8939 or at claims@nationallife.com to file a claim.
If the insured is living
When the insured is still living, a surrender may not always be the best or only solution. Taking a moment to understand the customer’s situation can help uncover options that may better suit their needs. There are three common scenarios:
1. Non-Medical Financial Reasons
If the request is related to a change in financial priorities where your client is no longer able to continue premium payments, there are several options depending on the product type. Options could include:
- reducing or temporarily stopping premium payments
- removing cost riders
- changing the death benefit from increasing to level
- decreasing the face amount
If the client decides to move forward with a policy surrender, remember that there may be tax implications for the policyowner and coverage will terminate.
Agent Action: Review current policy product type and policy design on the agent portal.
Email LifeCustomerservice@nationallife.com to request an inforce illustration showing how changes may impact the policy’s future performance.
If moving forward with a Surrender, you can submit the appropriate form to disbursements@nationallife.com.
2. Illness or Injury (ABR Claim)
Consider filing an ABR claim if the insured is living but facing a serious hardship such as:
- Needing assistance with activities of daily living (bathing, dressing, etc.)
- Diagnosis of terminal or critical illness (e.g., heart attack, stroke)
- Serious injury (coma, paralysis)
- Disability impacting ability to work for an extended period
An approved ABR claim provides access to a portion of the death benefit while living and may help cover medical or living expenses.
**eligibility depends on rider provisions and qualifying conditions
Agent Action: Contact the Claims Department at 800-732-8939 or at claims@nationallife.com to confirm eligibility and next steps.
3. Anticipation of Death (End-of-Life Needs)
It’s common when an individual is nearing the end-of-life to put plans in place in anticipation of death. When planning for end-of-life, funds can be needed for funeral or final expenses. A portion of the death benefit can be assigned directly to the funeral home, and any remaining death benefit is paid to the beneficiary. A key advantage to this approach is funds paid after death are typically not taxable.
Agent Action: Contact the Claims Department at 800-732-8939 or claims@nationallife.com for guidance or additional questions.
TC8962536(0626)1
