Definition & Meaning
The Globe Life Change of Ownership form, often referred to as Form #15028, is a legal document that facilitates the transfer of ownership of a life insurance policy from one individual or entity to another. This form is essential for policyholders who wish to gift, sell, or co-own their life insurance policy. By completing this form, the original policyholder relinquishes control, rights, and responsibilities associated with the policy, which may have significant implications for tax liabilities and premium payments.
How to Use the Globe Life Change of Ownership Form
Utilizing the Globe Life Change of Ownership form involves several steps to ensure proper completion and submission. First, the current policyholder must obtain the form, which can typically be found on the Globe Life website or through their customer service. Once the form is acquired, the policyholder needs to fill in essential details such as the policy number, the name of the new owner, and the reason for the transfer. After ensuring all information is accurate, the form should be signed by both the current and new owners to validate the transfer.
How to Obtain the Globe Life Change of Ownership Form
The Globe Life Change of Ownership form can be obtained through various channels. Policyholders can visit the official Globe Life website, where forms are often available for download. Alternatively, contacting Globe Life customer service can provide direct assistance in acquiring the form. Additionally, policyholders may find the form in their policy documents or through their online account if they have registered for digital access.
Steps to Complete the Globe Life Change of Ownership Form
Completing the Globe Life Change of Ownership form requires careful attention to detail. Here are the steps to follow:
- Gather Information: Collect all necessary information, including the policy number, names of all parties involved, and the intended effective date of the transfer.
- Fill Out the Form: Accurately input the required details, ensuring that all names are spelled correctly and that the policy number is accurate.
- Sign the Form: Both the current owner and the new owner must sign the form to validate the transfer.
- Submit the Form: Send the completed form to Globe Life via the method specified on the form, whether by mail or electronically.
Key Elements of the Globe Life Change of Ownership Form
Several key elements must be included in the Globe Life Change of Ownership form to ensure its validity:
- Policy Number: This unique identifier is crucial for processing the ownership transfer.
- Current Owner's Information: Full name and contact information of the existing policyholder are required.
- New Owner's Information: Details about the new owner, including their relationship to the current owner, must be provided.
- Signatures: Both parties must sign to confirm their agreement to the transfer.
Important Terms Related to the Globe Life Change of Ownership Form
Understanding the terminology associated with the Globe Life Change of Ownership form is essential for clarity:
- Beneficiary: The individual or entity entitled to receive the death benefit upon the policyholder's passing.
- Premiums: The payments made to keep the insurance policy active, which the new owner will typically assume.
- Transfer-for-Value Rule: A tax provision that may apply when ownership is transferred for monetary consideration, potentially affecting the tax status of the death benefit.
Legal Use of the Globe Life Change of Ownership Form
The Globe Life Change of Ownership form serves a legal purpose in the context of life insurance policies. By completing and submitting this form, the current policyholder officially transfers ownership rights, which is recognized under U.S. law. This legal recognition is crucial for ensuring that the new owner can manage the policy, including making changes to beneficiaries and accessing any cash value. It is advisable to consult with a legal or financial advisor to understand the implications of ownership transfer fully.
Examples of Using the Globe Life Change of Ownership Form
There are various scenarios in which the Globe Life Change of Ownership form may be utilized:
- Gifting a Policy: A parent may choose to gift a life insurance policy to their child, using the form to officially transfer ownership.
- Business Transfer: A business owner may transfer a policy to a partner as part of a buy-sell agreement.
- Divorce Settlement: In the event of a divorce, one spouse may transfer ownership of a policy as part of the settlement agreement.
