In-Depth View Of A Life Insurance Policy
Three are many important financial decisions that must be made in life, but determining the optimal level of life insurance coverage is one of the most important. Without sufficient life insurance coverage in place your family could be left to suffer a devastating financial loss in addition to their devastating emotional loss. It is important for everyone with a family to protect to look at his or her life insurance needs and to compare coverage offers very carefully.
Buying life insurance can be a difficult and complicated process, but it does not have to be that way. With a little bit of research, some knowledge and plenty of shopping around it is possible to get excellent coverage for a very reasonable price. While the cost of life insurance will vary widely according to a number of factors such as the age of the applicant, the health of the applicant, the amount of coverage and the term of that policy shopping around can save applicants a great deal of money.
Doing plenty of research can also help applicants get the most coverage for their limited life insurance budgets. Understanding how life insurance works and what it covers is a great way to ensure that your family truly has the protection they need to carry on in the event of your untimely demise. Being an informed consumer is important in all aspects of life, but it is particularly critical when it comes to shopping for life insurance.
Looking at a sample policy is a good way to get a feel for what your own life insurance policy will look like. While the exact layout of the policy will vary from company to company, the life insurance policy will generally include basic information such as the name of the insured, the names of all beneficiaries, and the amount of the death benefit. The life insurance policy will also include any required disclaimers, as well as a section related to any exclusions.
The policy may for instance have an exclusion for suicide, or for specific medical conditions. It is important to read the policy carefully and to question any exclusions or disclaimers. When the policy is received it is important to read the entire document, including the dreaded fine print. If you discover any errors, or have any questions, it is important to get those questions answered or adjustments made as soon as possible. If problems are found simply contact your insurance agent or the company that wrote the policy.
It is also important to verify all of the information on the policy as soon as possible. Look carefully at the spelling of names, at the address listed on the policy and at the names of any beneficiaries. If any errors or omissions are found it is important to ask that they be corrected as quickly as possible. In most cases a simple phone call to the company should be enough to get the ball rolling, but you may want to follow up with a written letter as well. Documenting any requested changes can provide a valuable paper trail in the event a dispute arises in the future.
Speaking of paper, it is important that the original life insurance policy be kept in a safe place, preferably in a safe deposit box at the bank. If a safe deposit box is not available a fireproof safe can be a good substitute. The key is to keep the policy in a place where it will be safe and at the same time easily accessible when it is needed. It is important for the insured to provide his or her spouse and other loved ones with the location of the original policy, as well as any information required to access the policy. This information can consist of anything from the safe combination to the location of the safe deposit box key. Having this information readily available will help your beneficiaries get the benefits they deserve and lessen their stress during a difficult time.
Above all, it is important to treat the life insurance document as the vital financial protection it is. Life insurance is designed to protect your loved ones in their time of need, and it is important to keep the original document safe. Many people find that keeping the original in a fireproof safe or safe deposit box and keeping copies of the document in a safe place as well will make it easier for their beneficiaries to file a life insurance claim when they need to.
If you do not have a copy of your life insurance policy it is important to contact your life insurance agent or life insurance company as soon as possible. You should have received the original insurance document when the policy was approved by the underwriters. If you did not be sure to contact the company and ask for one. If you do not receive the policy in a timely basis be sure to follow up in writing. Also be sure to keep copies of all correspondence, including both letters and emails. Also keep detailed records of any company information that takes place on the phone, including the names of any customer service representatives, the times of the calls and a list of topics discussed. Keeping accurate records will make it easier to settle any disputes down the road.
Obtaining a copy of your original life insurance policy, reviewing that policy carefully, and keeping this vital document in a safe place is the responsibility of every policy owner. If you want to make sure those vital benefits are available when they are needed most you need to make sure your policy is accurate, up to date and well protected. It may take a bit of research and hard work to make it happen, but your family will be glad you were so proactive. Knowing where the life insurance policy is, what it covers and how to access those important benefits will relieve your family of an additional burden during a very difficult time.