01. How do I change my beneficiary?  Print To change your beneficiary, you must complete a Change of Beneficiary Form and return it to Navy Mutual. Once the form is completed, it can be mailed to Navy Mutual, emailed to claims@navymutual.org, or faxed to 703-945-1441. Please call a Membership Representative at 800-628-6011 if you have any questions.

02. Can I designate a trust as my beneficiary?  Print Yes, a trust may be named as the beneficiary. To name the trust as a beneficiary, please enter the full name and Tax ID number of the trust in the beneficiary section of your application or Change of Beneficiary Form.

03. Can I change the owner of a life insurance policy?  Print Yes, you may assign ownership of an existing life insurance policy at anytime by completing and returning an assignment form. To receive an assignment form, please contact a membership representative by phone at 800-628-6011 or by email at CustomerService@navymutual.org.

04. Will I be taxed if I change the owner of my permanent plus policy?  Print Transferring the ownership of your Permanent ‘Plus’ plan to a spouse will not incur a taxable event. However, if you plan to transfer ownership to anyone other than a spouse, there may be various tax issues associated with the assignment. We strongly advise contacting your tax advisor for greater details prior to assigning your policy.

05. Can I do a collateral assignment?  Print No, Navy Mutual does not allow collateral assignments.

06. What payment methods are available for paying premiums?  Print Navy Mutual life insurance plans may be paid quarterly, semiannually, annually or monthly (by military allotment or electronic deduction from a bank account). The payment mode you choose will not increase or decrease the amount of the monthly premium established on your contract.

07. Can I pay my premium by credit card?  Print Only the initial premium deposit for a new life insurance policy may be paid by credit card, all other premium payments must be paid by check or electronic deduction.

08. Will my allotment or electronic premium deductions be reduced when my premiums or my Career Assistance Loan are paid in full?  Print Yes, Navy Mutual will automatically reduce your allotment or electronic deduction from a bank once the premiums or loan are paid in full. If excess payments are received by Navy Mutual, we will return that payment to you in the form of a check.

09. Do I need a physical to increase my coverage?  Print Yes, a physical and new application are required to increase your life insurance coverage. If you have a physical which was completed within 12 months of the new application, you can submit a copy of that physical with the application.

10. How can I get a copy of my lab results?  Print To receive a copy of you lab results, please call a Membership Representative at 800-628-6011 or send an email to CustomerService@navymutual.org@navymutual.org stating your request. When requesting a copy of your lab results, please provide us with your full name, mailing address and policy number.

11. How do I convert my policy?  Print To convert your term life insurance coverage to another Navy Mutual life insurance policy without a physical, all you will need to do is complete a conversion life insurance application and return it to Navy Mutual. Please refer to your certificate of insurance for specific details on your conversion rights prior to completing the application. Once the application is completed, it can be mailed to Navy Mutual, emailed to Counselor@navymutual.org, or faxed to 703-945-1441.

12. What does the conversion date on my certificate mean?  Print The conversion date on your life insurance certificate indicates the latest date when you may elect to transfer your current life insurance coverage to another Navy Mutual life insurance plan without the requirement of providing a physical. Please refer to your certificate of insurance for specific details on your conversion rights.

13. What are the 2009 rates for Navy Mutual’s Permanent ‘Plus’ life insurance plans and settlement options?  Print 7.40% is the 2009 rate for all Permanent ‘Plus’ life insurance plans, fixed period settlement options, and life income settlement options. 5.40% is the 2009 rate for all interest only settlement options.

14. How do I take out a loan against my Permanent ‘Plus’ policy?  Print To take a loan against your Permanent ‘Plus’ policy, you must complete a Loan Request Form and return it to Navy Mutual. Once the form is completed, it can be mailed to Navy Mutual, emailed to loans@navymutual.org, or faxed to 703-945-1446. Please call a Membership Representative at 800-628-6011 if you have any questions.

15. How does the Permanent ‘Plus’ loan work?  Print Permanent ‘Plus’ policy owner’s may borrow up to 75% of their cash surrender value. Any amount of the cash surrender value which is not borrowed will remain in the policy and continue to be credited with the crediting rate. Once a Permanent ‘Plus’ loan is taken from the cash surrender value, interest on the loan begins to accrue and will be billed to the owner on the anniversary date of the policy each year. The 2008 loan interest rate which will billed is 6.90%. If the loan interest is not paid, then the interest will be rolled into the principal of the loan. If the loan interest is paid, ½ of 1% of the loan interest rate will be deducted to pay for the cost of maintaining the loan while the remaining interest will be credited to the cash surrender value. Therefore, you are paying Navy Mutual only ½ of 1% for the cost of the loan while the remaining amount is being paid directly to your cash surrender value. Any outstanding loan, with accrued interest, will be subtracted from the death benefit or cash value upon death or surrender, respectively. If the total loan should ever exceed the cash surrender value, the policy will lapse creating an immediate taxable event.

16. What are the credits and charges on my annual statement for my Permanent ‘Plus’ plan.  Print The “credits” represent the interest earned on your Permanent ‘Plus’ policy. The amount of credits (i.e., interest) which is applied is determined by the crediting rate being applied, the amount of cash value within the policy, and the size of any outstanding loan against the cash value. The “charges” represents the cost of insurance (i.e., mortality and administrative costs) which is necessary to provide the current death benefit and any Family Benefit Riders. The “charges” will vary throughout the year as your cash value and death benefit change. For greater details about your annual statement, please see the reverse side of the statement.

17. What is a Modified Endowment Contract?  Print A Modified Endowment Contract(MEC) is an IRS classification for certain Permanent 'Plus' policies which eliminates several tax advantaged features of a regular permanent life insurance plan. As a rule of thumb, policies issued after June 21, 1988 which are paid up in less than seven years and/or make a large lump sum payment at the beginning of the plan, will be classified as an MEC. If a policy is an MEC, the following transactions will be taxable to the extent of interest: policy loans; assignments to someone other than a spouse or revocable trust; cash value conversions to annuities other than a life income annuity; policy surrenders. In addition, if any of the previously mentioned transactions occur prior to age 59 ½, the owner will also incur a 10% tax penalty on the interest within the policy.