5 Things You Must Know About Life Insurance Policy

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When already you have purchased life insurance policy and take initiative to make the first installment of the policy, and finally you have made all of those things but not fully means, in fact still now there are some important issues that need to be solved such as read out the whole life insurance policy contract papers with all of its legal issues. Now what you are thinking insight at your mind is that necessary to know all information about inside and outside of the policy to complete such an important deal. Still now if you are not read fully read policy paper yet, maybe there are some important aspects and you are not fully aware of it. 

1.    Company Vs. Beneficiary 

After your death,  your deemed beneficiary should need to contact the insurance company, the company will not contact with the policy beneficiary. At present time many of top life insurance companies agreed to pay millions of dollars in settlements. Because at the prior period of modern era they did not pay a claim for the policyholders to the beneficiary having know the policyholder is not anymore exist of the earth. In 2012, MetLife the largest and best life insurance company in the United States agreed to pay 500 millions dollars according to multi-state investigations of unpaid claims and habituated to run payment practices. 

Initiative to make sure payment of life insurance policy

Keep in mind that already you have told your insurance beneficiary about the insurance policy & put in safe place the life insurance policy papers along with company’s phone number. Definitely, it will make a sound to your beneficiary to be paid off after your death. But many of us forget to do this carefully. A recent statistics says, about 80 phone calls are coming at their office to know if their family member had a life insurance policy with our company. This indicates a terrible situation to the beneficiary family of the policy. It is not quite impossible to find a life insurance company because there is 900+ life insurance company are operate their business successfully. With considering this type of situation when you receive a life insurance policy, put in safe place the policy papers and tell your beneficiary where they will be able to access policy papers along with company contact number.

2.    Close Policy At One Time Payment

In terms of Cable and Cell phone bill many of us would not be able to make disposal of the bill at one time. It’s not a big deal because you cover up it by giving the double months bill. But in terms of life insurance policy will not work with a similar path. About every policy have a grace period, typically 14 or 30 days. But after crossing the grace period the policy is almost canceled. Even still now you are on a regular payment schedule for last 18 years if you miss one installment of the policy the company will mostly cancel your policy. In spite of being not fair, it’s business.  At many cases may be you will not be able to continue your life insurance policy, meaning sign a form that states you are in the same health condition when you have taken life insurance policy. But by the time your health condition has changed in any way, The insurance company most likely cancel your policy leaving you without any kinds of coverage. 

At the time of terminate the policy

Truly, it happens every day. Scattered people would like to call at the company’s phone number to express the present situation, already they have missed the one installment which is enough to make disposal of a policy. Sometimes in spite of having a good health condition some people will not be able to make a life insurance policy easily, Don’t miss your policy payment on due date and definitely receive payment within one time, do electronic fund transfer if necessary, pay semi of annual payment to avoid disposal of policy, but make your installment payment on time. Don’t leave it in any situation for only one time. 

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3.    Keep Up To Date Your Beneficiary According To Life Changes

If your are not be able to believe to your loved one or spouse anymore then you should need to contact the life insurance company to change the beneficiary name in the policy paper. Because within average life insurance policy time period is 20 years, there are many changes may appear in your life by this time. In many life insurance beneficiary cases, ex-husband and ex-wife are able to get this type of advantage but you should need to get rid of this situation if you are not trusting them anymore, I think this would be most stressful matter in your life. But you should not keep those beneficiary name in your policy paper with whom you are not anymore and you are not trusting them. If you have your own minor children and divorce occurs in your life, you should need to consider to setting up a trust one, naming your parents or siblings as the life insurance policy beneficiaries. 

4.  Turn Into Term Life Insurance Policy To Permanent Life Insurance For Free        

By default, there is an outstanding feature is available on most term life insurance policy (just make a query to your agent is that policy has it) this feature called conversion. This feature will allow your any portion of term policy turn into permanent policy. But until become 70 years old you can do this easily. Now there is question appear in your mind, why will you do this? Let me make a clear idea about this. When you are younger term life insurance policy is best for you because you will get a huge amount of coverage at the low price. When we become older we should need to change because the children are out of the home, the mortgage is totally paid down or off, after that you may thinking about covering ending expenses. The alteration option in your term life insurance policy will allow as much you want to convert your original face value amount to permanent life insurance policy without giving a health test. How awesome is it, isn’t it? I have seen a very common scenario that is who has a term life insurance policy enforcer for a long period of time but when it’s become expire looking for new coverage. 

However, in spite of not having any problem with their health, they took a life insurance policy. In this situation, I will suggest them just to convert their any portion of the policy and not lapse universal (Hole) policy which will save them from a great deal of money. If you have or there appear any new health issues from when you first took out your policy and if you are looking to extend or get a new policy, look at alteration on your current policy as an alternative.

5.  At Present Time Almost Every Policy Have A Term Called Quick Death Benefit Meet    Up

In this modern era many policies have a term which recognized as quick death benefit meet up, actually, it will give you benefit at the time of terminal illness which is added to your policy for free or exchange of a little bit fees. This feature will allow an insured, who is diagnosed for terminal illness and as a results life expectancy 12-24 months of less (depending on the company) to select 50% of eligible death benefit ($125000 to $250000) (Check your company provided an exact amount of eligible benefit). This advantage or benefit can be a blessing to help pay for medical costs, missed work, and to avoid reduction of a family’s savings account at a demanding time.