National Life Insurance is a popular group of life and financial services companies that provides annuity and health care products to individuals, families and businesses nationwide. It was chartered by the Vermont State Legislature in 1848. Its mission is to “improve and strengthen the security of individuals and their families by providing competitive policies at competitive rates.”
As with all insurance companies, there are benefits and risks associated with National Life Group policies, as well as specific policies available under different terms. In general, National Life Group insurance offers term life coverage in one, two or three decades, depending upon the amount of policy purchase, and individual or family insurance, including family health, vision, dental and life.
The benefits offered through this group policy vary from individual policy to an individual policy. Many policies offer medical savings and benefit packages, while others have a special rider designed to provide coverage for children, disability, or certain disaster situations. Some policies offer benefits similar to other private health insurance policies, while others offer more extensive benefits and coverages.
With National Life Group insurance, policyholders generally pay the same premiums they would if they purchased separate individual policies. However, the insurance company takes on additional risk by making the assumption that the insured will be able to pay the premiums in full on the policy. This additional risk makes National Life Group policies expensive, especially if a policyholder does not make his monthly premium payments in accordance with the plan.
As with all group policyholders, the benefits that are provided through National Life Insurance are also limited to the group as a whole, and the amount of coverage is also limited. For example, if two group policyholders die at the same time, the policy will not pay benefits to the surviving policyholder’s dependents. On the other hand, if a policyholder is unemployed or disabled, he or she may be eligible for benefits paid to the policyholder’s beneficiary.
The premiums that a policyholder must pay on the policy vary based on the policyholder’s income and health. Generally, the higher the income, the higher the premium required. Conversely, the lower the income, the higher the premium. Most policies will allow a policyholder to make small premium payments for preventive care coverage.
A policyholder must also take into account any medical history of the policyholder or dependents when applying for a policy through a group policy. Medical history requirements are often specified in a contract that will include information about the type and number of prescriptions taken by the policyholder, as well as the length of treatment if any, the health status of the insured, and whether the policyholder is receiving any type of special health care.
Once medical history information is submitted, it is reviewed and accepted in the insurance company’s database to determine whether or not the policyholder will qualify for coverage. If a medical condition that would prevent the policyholder from becoming eligible for a policy is found, the policyholder will receive a medical eligibility notice and will be told by mail to go to a local doctor to obtain pre-existing condition information. If the condition is not determined to be serious enough to warrant coverage, the policyholder will not be permitted to take the coverage.
Policyholders should also review the terms and conditions of the policy carefully before they sign. If there is a lapse in the policyholder’s coverage, it can result in penalties and interest rates that are higher than normal. If there is an early cancellation by the policyholder, he or she will have to reimburse the insurer for a portion of the premium. If the policyholder fails to make premium payments, he or she will not be able to receive benefits through the policy.
National Life Group Insurance policies provide the insured and his or her family with financial security. Many people buy these policies in order to ensure that the death of one member of the family will not put a large hole in the budget of the surviving policyholder. When a policyholder has a death benefit, he or she can use it to supplement the retirement plan of the policyholder’s beneficiaries.
Policies are also sold to employees to cover the costs of funeral expenses and medical bills of their family. Many people buy policies to provide for their parents’ children. However, many families buy these policies in order to provide health coverage for their children during a period of unemployment. Whatever reason that an individual buys a policy, a policyholder should take the time to review the contract thoroughly before purchasing a policy.