Life Insurance Policy Tips
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Life Insurance Policies and other Life Insurance topics.
How Can I Protect My Life Insurance Policy?
When you purchase life insurance there are a couple of basic things you can do to be sure your family gets the financial protection you intended.
Tip 1. Make Timely Premium Payments
- If payments are not current the policy may not be in force. In other words there may be no payment to your beneficiaries.
- When choosing among life insurance policies learn what, if any, coverage is available after the payments have lapsed. For example, on policies with unpaid premiums some companies may convert whole life plans to extended term plans. Payments are covered by any cash value that has accrued on the policy. Another option, depending upon how long the policy was held is the beneficiary may still receive the death benefit, but it will be significantly reduced.
Tip 2. Share Information with Beneficiaries about Your Life Insurance Policy
- Talk with loved ones about:
- The amount of coverage
- Your insurance carrier
- Where the policy is stored
- Where your financial records are stored – these may be needed if the policy is lost, or to prove premium payment history
Tip 3. There is no Time Limit for Life Insurance Claims and Payouts
- If the beneficiary is unaware of a life insurance policy, but discovers it even 20 years later the death benefit will still be paid.