Power of Attorney: Helping Clients Prepare for the Unexpected

Did You Know?

Power of Attorney Discussions Can Help Protect Clients During Servicing and Living Benefit Claims

Why Bring Up Power of Attorney?

Estate strategy conversations often focus on:

✓     Wills

✓     Trusts

✓     Beneficiary designations

But one important document is often overlooked:

Power of Attorney (POA)

A POA allows a designated individual, often called an attorney-in-fact, to act on behalf of another person for financial and legal matters. For life insurance and annuity clients, this authority may become important if the policy or contract owner becomes unable to manage their affairs due to illness, injury, or cognitive decline. It can also matter when someone is assisting with a Living Benefit Claim-related request while the grantor is living. Without a POA, it is generally necessary for a court to appoint someone to act on your client’s behalf.

Agent Opportunity

During client reviews, ask:

“Have you reviewed your Power of Attorney documents as part of your overall estate plan with your legal advisor/attorney, including whether they authorize someone to assist with life insurance, annuity, or Living Benefit-related matters while you are living?”

This question helps clients think beyond ownership and beneficiary designations and may prompt them to review their documents with a legal advisor.

When Might a POA Be Submitted?

Subject to National Life Group review and approval, a properly executed POA may be submitted while the grantor is living when someone is assisting with:

• Living Benefit claim requests or elections
• Completing or submitting Living Benefit claim forms
• Providing or updating payment information for an approved Living Benefit claim
• Providing or updating mailing or address information while the policy or contract owner is living
• Questions about Living Benefit claim requirements or claim status

Important: A POA does not authorize anyone to act for a grantor after death. Once the grantor dies, POA authority ends. Death claim matters should be handled by the named beneficiary, estate representative, or other authorized party, as applicable.

A POA may also be submitted while the policy or contract owner is living for servicing transactions, such as beneficiary changes, ownership changes, premium payment updates, address changes, and other policy or contract servicing requests.

Important to Know

Not all POAs grant the same authority, and POA authority ends at death.

POA requirements vary by state, and not all POA documents automatically grant authority for life insurance policies, annuity contracts, Living Benefit requests, or specific policy or contract servicing transactions.

Each POA is reviewed individually based on the language of the document, applicable state law, and the transaction or Living Benefit request being made. The document must provide sufficient authority for the specific action requested before National Life can honor it.

Clients should work with their attorney or legal advisor to determine whether their POA documents are properly set up for their individual circumstances.

Why Does This Matter?

Without appropriate estate planning documents in place while the client is living:

❌  Living Benefit requests may be delayed

❌  Living Benefit claim forms, payment information, or address updates may become more complex

❌  Policy or contract servicing requests may take longer to resolve

❌  Families may face additional challenges during already difficult circumstances

A conversation today helps clients prepare for tomorrow.

The companies of National Life Group and its representatives do not provide legal or tax advice. Clients should consult their legal and tax advisors regarding their individual circumstances, including whether a Power of Attorney grants the intended authority for life insurance policies, annuity contracts, Living Benefit requests, or policy or contract servicing matters. A Power of Attorney generally ends at the grantor’s death and does not authorize post-death claim activity. TC9074260(0826)1