Things You May Not Notice In Your Life Insurance Policy – When you decide to buy a life insurance quote, it means that you are more than ready to invest in a safety net that offers financial security for your loved ones if you pass away or die.
In the meantime, many individuals agree to the terms on their policy documents without understanding the complexities of what is included or mentioned in the quote. So, what are the things you may not notice in your life insurance policy?
Although it can be easy to pay more attention to the basics like premium payments and coverage amount, there are other less-popular but important features and terms that can affect the cost and effectiveness of your policy significantly.
When Should You Review Your Policy?
This is a very important question that life insurance policyholders need to ask themselves and need to be curious about. Generally, after a policyholder applies for a policy, they are advised to review their insurance policy periodically.
This is because it will help you make sure that your insurance quote meets your needs continuously and adequate coverage is maintained. However, being aware of why and when to check your insurance policy can be daunting. Here are some of the best times to check your life insurance quote:
- After major life events like birth or adoption of a child, health changes, marriage or divorce, or home purchase.
- When you achieve your financial goals.
- During yearly financial reviews.
- If you are not too sure of your coverage.
- When there are changes in insurance products or regulations.
By doing this, you do not have to worry about continuous and uninterrupted insurance coverage.
Things You May Not Notice In Your Life Insurance Policy
Here are7main things that you should pay attention to because you might not notice them in your life insurance quote:
- The Free Look Period
Life insurance policies usually come with a period called “free look”. Moreover, it is usually up to 10 days by based on your age and location, it can be extended up to 30 days. During the free look period, you can terminate your life insurance policy for any reason and get a full refund on your premium payment. You can also check the terms of your policy and ensure that your expectations are met.
- Premium Payment Options
Different premium payment options are provided by life insurance quotes. It is popularly known as the mode of premium payment. However, if you are looking to save money on your premium payment, you can choose a less frequent payment mode. Unlike annual payments, monthly, quarterly, or semi-annually premium payment modes comes with extra charges.
- Incontestability Clause
Incontestability clause is always included in life insurance quotes which enables policyholders or insurers to reject a death benefit claims because of misrepresentation or fraud or terminate their policies. Usually, this clause is applied for the first one to 2 years of the policy and the policyholder will get their premium refunded.
- Grace Period for Payment
Life insurance policies usually come with a grace period of around 31 days During this period, as a policyholder, if you do not make premium payments, your coverage will still be active. After this period ends, your coverage will be terminated by the insurance company.
- Suicide Clause
Just like the incontestability clause, the suicide clause is another aspect that you need to pay attention to. This clause mentions that if the policyholder commits suicide within the first 2 years of purchasing the policy, death benefits will not be paid to the beneficiaries. Instead, the premium will be refunded to the beneficiaries of the insured. Meanwhile suicide-related claims will be covered after this 2-year period is over.
- Life Insurance Riders
Life insurance riders are also known as additional endorsements and they are add-ons to your quote. Furthermore, they are purchased and included to give extra or additional coverage to the policyholder. There are different types of riders and they are either free or require additional costs. Based on your coverage needs and careful consideration of your budget, they are worth the expense.
- Death Benefit Settlement Options
With a life insurance policy, you get to enjoy multiple ways to get the death benefit, especially as a beneficiary. The most popular and commonly used means is by receiving as a lump-sum payment. Meanwhile, you can also get annuity-like payments for a fixed period or keep the funds in an interest-bearing account.
In Conclusion
By understanding these details of your life insurance quote, you get to enjoy sufficient coverage and meet your long-term financial goals. So, do not ignore these subtle features because they also play an important role in determining the value and effectiveness of your policy. Freely explore these aspects and discover possible opportunities for avoiding mistakes, saving money, and making adjustments to coverage.
