FAQs

Frequently Asked Questions (F.A.Q.)

Can a foundation or charitable institution be named as a plan beneficiary?
Yes. The plan owner may designate a foundation or a charitable institution as a beneficiary of a plan. This designation will be subject to enrollment under the premise of insurable interest.


Can a plan issued in dollars be changed to Euros or vice versa?
No. The currency of a plan cannot be changed.


Can beneficiaries be minors?
If the policy owner wants a minor to receive insurance benefits, the minor can be named as a beneficiary. However, since benefits are not generally paid to minors, the death benefit will be delivered to the legal representative or guardian. We recommend that a trust or other type of custodial property instrument be established.


Can contributions that have been made to a plan be transferred to another plan in order to have only one plan?
Yes. However, the amount transferred to the ongoing plan will be the surrender value of the plan that is cancelled, and not its value on account.


Can funds from the European profile be chosen for a plan in dollars and vice versa?
No. Plans in Euros must be invested in funds/indexes from the European table, and plans in U.S. dollars must be invested in funds/indexes from the American/International table.


How can I access a policy through the StateTrust Life web site?
To enter the StateTrust Life web site, our customers must receive a User ID and a Password. To see information about your policy or policies, go to our web site, statetrustlife.com, click on the “login” button, and enter your user ID and password.


How can I contact a StateTrust Life & Annuities agent?
Please send us your complete contact information by going to our web site, statetrustlife.com. Select the “Contact Us” button on the lower right of the page, and a StateTrust Life & Annuities advisor or international representative will get in touch with you.


How can I take out a loan on a policy?
A policy holder can request a loan on a policy if assets are available for that purpose. We suggest you request this information through your advisor or through our email, policyholder@statetrustlife.com. Once the information has been provided, you must request the loan in writing through the above-mentioned email or through your StateTrust Life & Annuities advisor or international representative.


How do I name a trust as a beneficiary?
For information on this topic, please see the section on trusts on this web site.


How is the percentage distribution among beneficiaries determined?
The percentage distribution is based on the percentages given to each beneficiary (for a total of 100%): for example, 70% to María de Rodríguez, wife, and 30% to Juan Rodríguez, son.


If a customer moves to the United States and becomes a U.S. resident or a citizen, what happens to the tax aspects of the plan?
Since it is an off-shore investment, when the customer becomes a U.S. resident or citizen and files a tax return, the investment must be declared. For more information, please consult an accountant who specializes in this area.


If the plan is cancelled, what is the surrender value?
The surrender value is the amount paid to the policy owner when a policy is cancelled. The surrender value is equal to the value on account minus any debts, plus a surrender charge commensurate with the number of years the plan has been in effect. A cancellation fee is also deducted from the surrender value.


What are the factors that affect investment results?
The investment profiles are made up of highly diversified indexes/funds that invest in the 5 largest capital markets in the world. Fluctuations and volatility in these markets will be reflected in the indexes/funds contained in the investment profiles. Moreover, the investment profiles are diversified within different levels of risk, so that customers can choose their time horizon and financial goals according to their risk tolerance.


What costs are applied to the plans?
Each month the following costs are deducted from your policy:
  • An administrative fee, subject to a maximum of $0.10 for each $1,000 net amount at risk
  • A monthly maintenance fee for expenses, which may be modified at the Company’s discretion.
  • Commissions on the premium, which vary according to the year of the policy.
  • A funds management fee equivalent to a maximum of 1.5%/12 of the account value.
  • The costs of insurance and benefits or supplements you have contracted.


What happens to the plans or policies issued if the customer moves away from his/her country of residence? Should the customer notify StateTrust Life?
After their policies have been issued, customers can move to and live in any other country in the world without the need for any modification of a plan. It is extremely important that the customer inform us about the move, and furthermore, update information about the address, telephone numbers, and email where he/she can be contacted.


What is the difference between a primary and a contingent beneficiary?
A primary beneficiary is the person or persons to whom the death benefits of a policy are paid when the insured dies. The rights of any primary beneficiary who dies before the insured will pass to the main surviving beneficiary or beneficiaries unless the insured stipulates otherwise. A contingent beneficiary is the person or persons designated by the policy owner to receive the death benefit if there are no living primary beneficiaries when the insured dies.


What is the maximum loan amount that can be applied for?
The maximum loan amount is 80% of the existing surrender value on the date of the loan application, minus the following amounts:
  1. Twelve (12) months interest on the loan and
  2. An amount equal to the balance of monthly deductions until the plan anniversary plus a cancellation fee.


What is the surrender charge?
It is the amount of money that is deducted from the total accrued value on account if a customer asks to surrender a policy or reduce the policy’s value.


What is the surrender value?
This is the amount paid to the policy owner when the owner applies to surrender or cancel a policy. It is equal to the value on account at the time of the application, minus any surrender charge, monthly fee, or debt for a loan that has not been repaid.


What is universal life insurance?
This is life insurance that combines protection, obtained from coverage and savings, through fixed growth based on current rates. These policies are flexible, both in terms of premiums and death benefits. They pay death benefits if the insured dies before the expiration of the policy. They pay the value on account if the owner is living when the policy terminates. When a premium is paid, its value is immediately discounted and the balance is placed in the value on account with the goal of earning interest at current rates. Each month, the costs necessary to keep the policy in operation are covered by the value on account, regardless of whether the applicable premium was paid or not. The cost of insurance will rise each year, based on the age of the insured.


Where is StateTrust Life & Annuities registered and domiciled and who are its backers?
StateTrust Life and Annuities Limited is a business domiciled in the British Virgin Islands and regulated exclusively by the Financial Services Commission of the Islands. The provisions of your Plan will be governed by the laws of the British Virgin Islands and interpreted according to the same, and in particular, the Insurance Law of 1994 and the Insurance Regulations of 1995. StateTrust Life and Annuities has reinsured a high percentage of mortality risk through first-line reinsurance companies, such as Scor Global Life, one of the largest insurance companies in Europe. StateTrust Life and Annuities has segregated accounts which cannot be taken over by creditors. Each year, the company is audited by recognized international firms and is subject to actuarial reviews. Plan investments are managed by StateTrust Capital, a U.S. company within the group.


Who can be named as a beneficiary?
A beneficiary can be one or several individuals or juridical persons. Individuals, in general, should be related to the insured or the owner in some way. This designation will be subject to enrollment under the premise of insurable interest.


Why aren’t actual plan values similar to the projected values?
Projected values represent an ideal scenario in which the customer’s contributions are received and applied to the plan on the exact date they are due. Projected returns are derived from a percentage determined by the investment profile chosen. That percentage is based on historical average returns as of the day the example was formulated. Since it is an ideal scenario, the projected values are not affected by capital market volatility. The cost of insurance is determined according to the prevailing mortality rate; administrative expenses taken into account are those that were in effect at the start of the calendar year in which the projection or example was made.
On the other hand, actual Plan values, as reflected in the annual reports, show a customer’s contributions as of the dates on which they were received. If there are delays in contribution payments, the returns vary, given that they are the actual returns generated at the end of each month. And they are applied to the plan according to the investment profile chosen by the customer. At times there are significant upward or downward variations, depending on the performance of the capital markets. Insurance costs vary each year according to age; administrative and general expenses are subject to the company’s discretion.


Questions about Payments



Are third party payments accepted?
Yes. Such payments must be accompanied by the appropriate form; however, they will be subject to evaluation and approval by the billing department.


How long can I suspend payment of the scheduled contributions?
You may suspend payment of the scheduled contributions under the following conditions:
(a) During the first five years, payment of the scheduled contributions can be suspended whenever the total of premiums paid is at least equal to the minimum monthly premium multiplied by the number of months that have elapsed since the date the plan came into effect, and the value on account on the day of the monthly anniversary is positive.
(b) After the fifth year, payments may be suspended while the plan has a positive value on account. It is recommended that you monitor the plan in order to avoid cancellation.


If a customer has an account at StateTrust Group, can he/she enroll in automatic payment for a StateTrust Life policy?
What is the procedure?
If it is an investment account with StateTrust, the account must include checking and a credit card. To activate the payment service, the customer must send us an Authorization of Recurrent Payments form and a copy of a voided check. If it is an account with StateTrust Bank, the customer must give written instructions to a bank representative, or through an advisor or international representative.


If a customer opts for partial retirement, what would the retirement amount be?
If the customer has a fixed plan, the partial retirement amount is what appears in the example or projection, according to the year in which the premiums were paid in full. If it is a variable plan, the partial retirement amount will depend on the value on account on the date the plan expires.


What are the allowable relationships between the insured and the person who makes the payment?
In addition to the owner of the plan, payments are only accepted from the following relatives of the insured: father, mother, spouse, children, and siblings.


What is the minimum premium that a customer can pay?
It is the minimum premium – attached to the contract upon issuance of the policy – that is specified in the example or projection signed by the customer.


What should I do in the case that I cannot make the scheduled contribution payments?
You should contact your StateTrust Life & Annuities international representative or write directly to policyholder@statetrustlife.com and request different payment alternatives.



Questions by Product Type


How can I calculate my life insurance needs?
With the calculators found on our web site, statetrustlife.com, you can get an approximate idea of the appropriate amount of coverage you require. For a more detailed response to your search, we recommend that you contact your StateTrust Life & Annuities advisor or international representative so that you can evaluate your family and estate situation together. Based on this information, you will receive a recommendation on the amount of insurance that best fits your needs for protection.


How can I get a life insurance policy, an education plan, or a retirement plan?
Please go to our web site, statetrustlife.com, select “Contact Us”, and send us your complete contact information. A StateTrust Life & Annuities advisor or international representative will get in touch with you to determine the best option according to your needs for estate protection, education, or retirement.


How can I get a quote for a life insurance policy, an education plan, or a retirement plan?
Please go to our web site, statetrustlife.com, and click on the “Contact Us” button. A StateTrust Life & Annuities advisor or international representative will get in touch with you.


What are the different options available for paying premiums on a policy?
StateTrust Life offers several options for paying your premiums:
a) You may sign up for an automatic payment service by signing an authorization form, which you must send to us along with the number of your international or U.S. credit card.
b) You may send information about your bank account, which must be with a U.S. bank. Checks must be issued in U.S. dollars and payable to StateTrust Life & Annuities.
c) You may also authorize automatic payment from your bank account. To do so, you must send us a Payment Authorization form, properly signed, along with your bank account information and a voided check.
d) You can make direct debits against your account at StateTrust Bank & Trust Ltd.


What is temporary or term insurance?
This is life insurance that pays death benefits if the insured dies while the policy is in effect. Premiums are fixed, and are paid for the period specified in the contract. No benefit is granted if the insured dies after expiration of the policy. Since the premiums cover the entire cost of insurance, the insurance has no value on account.


What is the difference between a variable education plan and a guaranteed education plan?
An education plan is an annuity in which the customer makes scheduled contributions for a specific period of time. On the expiration date of the plan, the beneficiary begins to receive an education payment for the time contracted. When the plan is guaranteed, the contributions and the amount of education are fixed, as are the contribution, deferment and education periods. The interest rate is fixed at the time of contract. When the plan is variable, the contribution amount is flexible, as are the contribution and deferment periods. The education period is fixed; however, the amount of education that is paid will depend on the plan’s value on account, which is variable, because it depends on the investment profile chosen by the customer and, in turn, on fluctuations in the capital markets.


What is the difference between a variable retirement plan and a guaranteed retirement plan?
A retirement plan is an annuity in which the customer makes scheduled contributions for a specific period of time. On the expiration date of the plan, the beneficiary begins to receive a retirement payment for the time contracted. When the plan is guaranteed, the contributions and the amount of retirement are fixed, as are the contribution, deferment and retirement periods. The interest rate is fixed at the time of contract. When the plan is variable, the contribution amount is flexible, as are the contribution and deferment periods. The retirement period is fixed; however, the amount of retirement that is paid will depend on the plan’s value on account, which is variable, because it depends on the investment profile chosen by the customer and, in turn, on fluctuations in the capital markets.


What is variable universal life insurance?
This is a type of life insurance that combines protection, through coverage; and savings, through the growth of contributions invested in the capital markets. These policies are flexible, both in terms of premiums and death benefits. They are considered variable products, because the policy holder assumes the risk associated with capital market volatility. This life insurance pays benefits if the insured dies before the expiration date of the policy, and pays the value on account if the insured is living on the expiration date of the policy. When a premium payment is made, the insurance cost and administrative costs are deducted from it. The balance is placed in the policy’s value on account with the goal of generating returns according to the investment profile selected.



Questions about Payments



After the policy is issued, must all changes in an activity or sport or involvement in a new activity or sport be reported?
In the case of plans with insurance, any change in an activity or sport or involvement in a new activity or sport must be reported for proper risk assessment, with no exclusion and with the guarantee of appropriate coverage.


Can I change the number of contribution years in the plans I have contracted?
In the case of guaranteed plans, you cannot make changes in the contribution years because these are contracted plans in which the customer has acquired a commitment regarding the amount and number of years of contributions. The Company, in turn, has a commitment regarding the amount and number of years of retirement. In the case of variable plans, this condition can be changed. This change should be discussed previously with your StateTrust Life & Annuities advisor or international representative or through policyholder@statetrustlife.com. StateTrust Life & Annuities will determine the conditions of the change.


Can I change the number of retirement/education years in the plans I have contracted?
No. As stipulated at the outset of the plan, this condition cannot be changed.


Can I change the number of years of deferment under the retirement/education plans I have contracted?
In the case of guaranteed plans, you cannot make changes in the years of deferment because the Company would not be able to fulfill its commitment regarding the amount and number of years of retirement. In the case of variable plans, this condition can be changed. This change should be discussed previously with your StateTrust Life & Annuities advisor or international representative or through policyholder@statetrustlife.com. StateTrust Life & Annuities will determine the conditions of the change.


Can I increase the amount of my insurance and keep the same premium amount?
All increases in coverage, additions of supplementary coverage and the inclusion of insurance in plans without insurance must be evaluated and approved.


How can I change a first or last name?
To request a change in the first or last name of the plan owner, the insured, or a beneficiary, you must send us a Change in Personal Information form with Part 2, “Name Change” properly completed and signed by the plan owner. In addition, you must attach legal evidence validating the requested change. These documents may be sent through your StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com


How can I change my beneficiaries?
To request a change in beneficiaries, you must send us the Change in Personal Information form with Part 3, “Change of Beneficiary” properly completed and signed by the plan owner. Each time a change in beneficiaries is requested, information about both the principal beneficiaries and contingent beneficiaries must be specified. This form may be sent through your StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com


How can I change my investment profile?
To make changes in your investment profile, you must send us a Change of Investment Profile request form, either through your advisor or our email, changes@statetrustlife.com


How can I change the ownership of a policy when the owner dies?
If the owner and the insured are different persons and the owner dies, the insured automatically becomes the owner. When there is a contingent owner, the contingent owner will become the policy owner. If there is no contingent owner, the insured becomes the owner. The insured must send StateTrust Life & Annuities the policy owner’s death certificate.


How can I change the ownership of a policy?
While the insured is living and the policy is in effect, the owner may designate a new owner, who will be able to avail himself/herself of all the rights of the policy. To do so, the owner must send us the following documents and submit them to underwriting for evaluation of the requested change: 1. A Change of Conditions form with Part 4, Change of Owner, properly completed. The form must be properly signed by both the current owner and the new owner. 2. A letter signed by both parties stating the reason for the change. 3. A Personal Changes form, if the new owner wishes to designate new beneficiaries. 4. A letter signed by the new owner supplying the following information: occupation, family income, work address and telephone numbers, home address and telephone numbers, email and/or other phone numbers where he/she can be contacted.


How can I update personal information such as address, telephone numbers and email?
To request that your personal information be updated, you must send us a Change in Personal Information form with Part 1, “Address Change,” and/or Part 4, “Other Changes” properly completed and signed by the insured or the plan owner, depending on who requests that information be updated. This form may be sent through your StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com


How do I name or designate beneficiaries?
Only the policy owner can name or change beneficiaries. They are named in the insurance application when the policy is issued. The policy owner may request changes in the beneficiaries afterwards. To do so, the policy owner must provide us with a properly signed and dated Personal Changes request form, which can be sent through his/her StateTrust Life & Annuities advisor or international representative or to changes@statetrustlife.com


How do I request a change in the amount of the scheduled premiums?
To request this change, you must send us a Change in Policy request form properly completed and signed by the plan owner; you must indicate whether it is a reduction or an increase in the premium amount and specify the new amount. If it is a reduction, the premium amount may not be less than the minimum premium established in your plan. In addition, if you are enrolled in an automatic payment service, you must send us a Payment Authorization form properly completed and signed by both the plan owner and the cardholder or account holder. It must include all the required information in the “Debit Account (ACH)” or “Credit Card” box and the new premium amount that you must pay. Both forms may be sent through your StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com


How do I request a change in the frequency of premium payments?
To request this change, you must send us a Change in Policy request form properly completed and signed by the plan owner indicating the new frequency of payments. If the payments are enrolled in an automatic Payment service, you must also send us all the required information in the “Debit Account (ACH)” or “Credit Card” box with the new premium payment amount; and the Payment Authorization form properly completed and signed by the cardholder or account holder, as well as by the owner of the plan. Both forms may be sent through your StateTrust Life & Annuities advisor or international representative or to payments@statetrustlife.com


How do I request changes in my credit card information?
To update your credit card information, you must send us a Payment Authorization form properly completed and signed by the cardholder and the plan owner, with all the required information in the “Credit Card” box. The form may be sent through your StateTrust Life & Annuities advisor or international representative or to payments@statetrustlife.com


What documents must be sent and what requirements must be met in order to reinstate a plan?
You must send us the Reinstatement Request form, pay all outstanding premiums, and provide us with your medical examinations, depending on the case.


What documents must be sent in order to cancel a plan?
To cancel your plan you must send us our Cancellation Request form and return the original policy.


What documents must be submitted in order to change to Non-Smoker status?
The insured must have stopped smoking for at least 24 months before requesting this type of change. If the insured meets this initial requirement, he/she must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A Change of Conditions request form
  • A new projection
  • DBS


What documents must be submitted in order to include additional temporary insurance?
To request this type of change, the insured must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A Change of Conditions request form
  • A new application
  • A new projection
  • Medical examinations, depending on the case


What documents must be submitted in order to include an accidental death benefit?
To request this type of change, the insured must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A letter signed by the insured that includes information about his/her occupation, specific duties, the sports or activities he/she engages in, pastimes, trips for work or pleasure, as well as the places visited
  • A new projection


What documents must be submitted in order to include an additional insured?
To request this type of change, the insured must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A Change of Conditions request form
  • A new application
  • A new projection
  • Medical examinations, depending on the case


What documents must be submitted in order to request an increase in the amount of insurance?
To request this type of change, the insured must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A Change of Conditions request form
  • A new application
  • A new projection
  • Medical examinations, depending on the case


What documents must be submitted in order to request the inclusion of insurance?
To request this type of change, the insured must send us the following documents through his/her StateTrust Life & Annuities advisor or international representative or through changes@statetrustlife.com:
  • A Change of Conditions request form
  • A new application
  • A new projection
  • Medical examinations, depending on the case


What does complete rebalancing mean when requesting a change in an investment profile?
A variable policy may start out with a specific investment profile. Some time later, the plan owner may request a change in that profile by sending StateTrust Life a Change of Investment Profile form. In order to make the change, it is essential that you specify in the form whether or not it is a change of profile with complete rebalancing. If you are requesting a complete rebalancing of the profile, the existing units will be sold and new units will be purchased under the new profile. If it is not a request for complete rebalancing, the existing units will be kept, and units under the new profile will be purchased with forthcoming contributions and returns.