Securitybenefit: Life Insurance Coverage And Your Account

Security Benefit Life Insurance Company, based in Topeka, Kansas, offers a range of financial products to help customers with their retirement planning and wealth management. The company has a long history, dating back to 1892, when it was founded by 11 men with $11, with the belief that everyone should have access to financial security. Over the years, the company has evolved from a fraternal society to a life insurance company and is now a leader in the U.S. retirement market, offering various products, including annuities and mutual fund programs. So, does a Security Benefit account include life insurance?

Security Benefit Life Insurance Company history

Security Benefit Life Insurance Company has a long history that dates back to the 19th century. Here is a detailed account of the company's history:

The Early Years:

In the late 19th century, life insurance was a luxury that only a few could afford. However, a group of determined individuals in Topeka, Kansas, set out to change that. On February 22, 1892, eleven men, each contributing a single dollar, founded a fraternal association called "The Knights and Ladies of Security." This association aimed to provide working men, women, and their children with financial security and protection in times of need. The founding principles of wisdom, protection, and security guided the organization and shaped its mission.

Growth and Philanthropy:

The Knights and Ladies of Security quickly gained a national reputation for its ingenuity and philanthropy. By 1895, it had established itself as one of the most progressive fraternities, with 328 councils, 13,000 issued certificates, and an anticipated 8,000 membership applications by the end of the year. The society actively supported flood relief efforts in the Midwest in 1903 and provided financial assistance to victims of the 1906 San Francisco earthquake, demonstrating its commitment to helping those in need.

Transition to Life Insurance:

In 1919, The Knights and Ladies of Security merged with another fraternal order, becoming the Security Benefit Association. This marked a significant step towards transitioning from a fraternal society to a life insurance company. In 1950, the organization officially changed its name to Security Benefit Life Insurance Company, ending its era as a fraternal society and becoming a mutual legal reserve life insurance company.

Innovation and Leadership:

Security Benefit Life Insurance Company continued to innovate and expand its offerings. In 1960, even before the advent of 401(k) plans, the company recognized the importance of retirement planning for its associates and introduced its first variable annuity in 1970. By the 1970s, Security Benefit had established itself as the largest insurance company headquartered in Kansas and ranked in the top 5% of life insurance companies nationwide. The company continued to thrive and, by 2000, had $11 billion in assets, solidifying its leadership position in the industry.

Recent Developments:

In 2010, an investor group led by Guggenheim Partners acquired Security Benefit, and it became privately owned. The company continued to grow and diversify its product line, reaching $12.8 billion in assets under management. In 2011, Security Benefit launched its first fixed-index annuity, Secure Income Annuity, which was a significant success. The company has consistently been recognized for its achievements, community involvement, and employee satisfaction, receiving numerous awards and accolades over the years.

Today, Security Benefit Life Insurance Company is a well-respected leader in the U.S. retirement market and wealth segments, known for its strength, innovation, and excellence. With a rich history spanning over a century, the company remains committed to helping customers align their assets with their aspirations.

Types of insurance offered

Security Benefit offers a range of insurance products to meet the diverse needs of its customers. The company has a long history in the insurance industry, dating back over 130 years, and has established itself as a leader in the U.S. retirement market and wealth segments. Security Benefit provides a broad suite of annuities and mutual fund programs designed to help customers align their assets with their financial goals and aspirations.

• Fixed Annuities: Security Benefit offers fixed annuities, which provide a guaranteed interest rate on your investment. This option is ideal for those seeking a stable and predictable return on their retirement savings. Fixed annuities allow your savings to grow over time, providing a steady income stream during retirement.
• Fixed Indexed Annuities: These annuities offer the potential for higher returns by tying investment growth to the performance of specific market indices, such as the S&P 500. While returns may vary based on market conditions, they also provide a level of protection by guaranteeing a minimum interest rate or principal protection.
• Variable Annuities: Variable annuities provided by Security Benefit allow customers to invest in a range of underlying funds, such as stocks, bonds, or money market accounts. These annuities offer the potential for higher returns but also carry a higher risk. Variable annuities are often appealing to those comfortable with investing in the market and seeking to maximize their retirement savings.
• Mutual Fund Programs: Security Benefit offers a range of mutual fund programs that provide customers with a diversified investment portfolio. These programs typically invest in a mix of stocks, bonds, and other securities, offering the potential for long-term capital appreciation and dividend income. Mutual fund programs can help customers grow their assets over time and achieve their financial goals.

Security Benefit's insurance offerings are designed to provide financial security and flexibility for its customers. By offering a range of annuities and mutual fund programs, the company enables individuals to choose the options that best suit their risk tolerance, financial objectives, and retirement planning needs.

For specific details on the insurance products and their features, it is recommended to refer to the official Security Benefit website or consult with a financial professional.

Choosing a beneficiary

• Understanding the role of a beneficiary: A life insurance beneficiary is the person or entity who receives the death benefit from your life insurance policy when you pass away. They are paid the death benefit, and this contract is legally binding.
• Primary vs. contingent beneficiaries: Primary beneficiaries are the first in line to receive the death benefit if you die. Contingent or secondary beneficiaries receive the benefit if the primary beneficiary dies before you. It is recommended to have at least one of each type of beneficiary.
• Who can be a beneficiary: Almost anyone can be a life insurance beneficiary, including people, organisations, and trusts. Common examples include a spouse, children, a charitable organisation, or a legal entity like a company. Some insurers place limits on the number of beneficiaries you can name, so be selective if your policy has such a restriction.
• Insurable interest: The beneficiaries you choose must have an "insurable interest" in your life, meaning they have more to lose than gain financially or otherwise by your death. Most insurers will ask you to list the relationship you have with the beneficiary when filling out the form.
• Irrevocable vs. revocable beneficiaries: Irrevocable beneficiaries cannot be changed without the beneficiary's approval. This provides assurance that the death benefit will reach a specific person but limits your flexibility. On the other hand, revocable beneficiaries can be changed, updated, added, or removed at any time, giving you greater flexibility to match your current needs.
• Designating beneficiaries: When designating a beneficiary, be as specific as possible to avoid disputes. Instead of writing "spouse" or "child," include identifying factors such as their full name, Social Security number, relationship to you, date of birth, and address. Consult a legal professional to ensure you use the correct language.
• Allocating the death benefit: If you have multiple beneficiaries, you can choose how much of the payout each party receives. Ensure the percentages add up to 100% to avoid any complications.
• Naming children as beneficiaries: If you name your children as beneficiaries and they are still minors when you die, the payout can be complicated. You can appoint a legal guardian to receive the payout on their behalf, or set up a trust for your children, which allows you to specify when trust proceeds are released and how they are used.
• Notifying beneficiaries: While not a legal requirement, it is recommended to notify your beneficiaries and provide them with a copy of your life insurance policy. This ensures they are aware of their status and can take the necessary steps to file a claim when needed.
• Reviewing and updating beneficiaries: It's a good idea to review your beneficiaries regularly, especially after significant life changes such as marriage, divorce, the birth of children, or the death of a loved one. This ensures that your beneficiaries reflect your current needs and wishes.

How to name a beneficiary

Security Benefit is a company that provides life insurance, fixed annuities, fixed indexed annuities, and variable annuities. They have been in the retirement market and wealth segments for several years and are known for their strength, innovation, and excellence.

Naming a beneficiary is an important part of owning life insurance and other financial products. A beneficiary is the person or entity that you legally designate to receive the benefits from your financial products. Here are some steps to follow when naming a beneficiary:

• Understanding the role of a beneficiary: A beneficiary is the person or entity that receives the benefits from your life insurance policy or other financial accounts in the event of your death.
• Choosing a primary beneficiary: The primary beneficiary is the person or persons first in line to receive the death benefit from your life insurance policy. This is typically your spouse, children, or other family members.
• Selecting a contingent beneficiary: In case your primary beneficiary dies before or simultaneously with you, you can name a backup beneficiary, known as a secondary or contingent beneficiary. If all primary beneficiaries are deceased, the secondary beneficiaries will receive the death benefit.
• Deciding on multiple beneficiaries: If you want your life insurance payout to go to multiple people, you can name several beneficiaries. However, you will need to decide how to split the money between them, usually by percentage.
• Filling out the necessary forms: When applying for a life insurance policy, you will be asked to provide the name of your beneficiary or beneficiaries. After the insurance company approves your policy, your beneficiary is set.
• Keeping information up-to-date: It is important to keep your beneficiary designations current as your life changes, such as marriage, divorce, or the birth of a child. Remember to update your beneficiaries periodically to reflect these life changes.
• Providing detailed information: When naming your beneficiary, be specific and provide as much information as possible. This includes the person's full legal name, their relationship to you, and other contact details such as mailing address, email, phone number, date of birth, and Social Security number.
• Considering special circumstances: If you want to name a minor or a special needs dependent as a beneficiary, there may be additional considerations and requirements to ensure they can receive the benefits. Consult an attorney or financial professional for guidance in these cases.
• Reviewing and updating as needed: You can change beneficiaries at any time, and it is usually a straightforward process. Contact your insurance company, financial professional, or employer to learn how to review and update your beneficiary designations.

Special circumstances for changing beneficiaries

Security Benefit is a US company that provides retirement and wealth management services, including annuities and mutual fund programs. While I cannot confirm whether a Security Benefit account includes life insurance, here is some information on special circumstances for changing beneficiaries of a life insurance policy.

Changing the beneficiary of a life insurance policy is generally a straightforward process and can be done at any time without penalties or fees. The policyholder can change the beneficiary by contacting their insurance company and filling out a change of beneficiary form. However, there are a few special circumstances where approval may be required to make this change.

Power of Attorney

If the policyholder has given someone else power of attorney, that person may have the authority to change the beneficiaries on their behalf. Power of attorney is a legal document that allows someone else to make financial, legal, or medical decisions for the policyholder.

Community Property State

If the policyholder lives in a community property state and purchased their policy after getting married, they will need their spouse's permission to name someone other than their spouse as the beneficiary. Community property states include:

• Arizona
• California
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

Irrevocable Beneficiary

If the policyholder has named an irrevocable beneficiary, they will need that person's approval to remove them from the policy. Irrevocable beneficiaries are rare and cannot be removed without their consent. In some cases, irrevocable beneficiaries may also have approval power over other policy changes, such as adding or removing other beneficiaries or adjusting coverage levels.

It is important to note that these circumstances may vary depending on the specific terms of the life insurance policy and the state in which the policyholder resides. Policyholders should carefully review their policies and consult with a legal or financial professional if they have any questions or concerns about changing beneficiaries.

Frequently asked questions