With the purchase of life insurance policy, you have made a wise decision in securing your family’s future. However, if you’ve had the same insurance policy for a while, there are chances that your needs may undergo a change. To ensure that the insurance benefit passes over to your loved ones for their immediate financial concerns without any hassle, your life insurance policy should be ‘in place’ with adequate coverage without any gaps. It is highly recommended that you should review your policy regularly with your insurance advisor due to the below mentioned needs and circumstances.
• CONTINUITY OF POLICY
Once you have purchased your policy, it’s important that it remains in force for the entire period of coverage without any lapse in its continuity. At times, if by error/due to the non- sufficiency of funds in your bank account, the bank rejects withdrawal of your monthly insurance premiums, the insurance company will send you an ‘NSF notice’. There is a ‘30-day grace period’ after which the term insurance/ temporary insurance plan/ no saving policy will lapse.
As a consequence, the policy will need to be reinstated. For this, ‘evidence of insurability’ is required. If you had purchased the policy at a younger age when your health was fine, you got a desired/lower rate of premium. Now, if your health remains fine, the policy will be reinstated within a specific allowed duration. But if your health deteriorates, it may not be possible for you to obtain insurance coverage again or, you may have to purchase the policy at a higher rate of premium.
You certainly don’t want to imagine yourself in such situation since you had purchased the policy with an assurance that you have coverage for entire life. But if somehow your policy lapses, to ensure continued coverage, it’s vital that the advisor may reach you for prompt assistance. And to ensure that, he needs to have your updated contact details. For your best interest, it’s important that you get your policy reviewed at regular intervals by your advisor.
• CHANGE IN FAMILY STATUS
Any change in your family status demands a review of your policy. If you purchased a policy while you were unmarried, probably you have named your parent/grandparent as beneficiary who is eventually turning older earlier than you. As you get married, both you and your spouse become dependent on each other’s income. So you may need to add your spouse as your beneficiary. With the addition of a kid in your family, you would consider naming your kid as the beneficiary. But again, later on, when a second or third child is born in your family, you may need to review your policy again to add the other children as beneficiaries. This will ensure that your death claim benefit will divide equally among your children without creating any differences in them.
• CHANGE IN MARITAL STATUS
Changes in marital status also affect your policy. In case of married couples, usually the spouse is your beneficiary. In the adverse circumstances such as a divorce, you may need to revoke the name of the previous spouse as beneficiary. Further, in case of remarriage, you may need to name the new spouse as your beneficiary. Thus, a policy review on yearly basis will keep it updated.
• CHANGES IN HEALTH
During the purchase of policy, if due to certain health issues, you had to pay a little higher rate of premium; when your health improves, it’s vital that you review your policy with your agent as you may get the policy at a better/ lower rate of premium. The insurance company doesn’t inform you about available options via a letter. If you haven’t provided your updated address, phone number and email, the advisor won’t be able to contact you. For your best interest, always update the advisor in case your address, contact number or email id changes.
• NEW PLANS AND PROMOTIONS
From time to time, the insurance companies introduce new plans and promotions that provide additional features/reduced rates. You can save considerable amount of money and avail additional advantages by reviewing your policy through your insurance advisor. For a no obligation appointment, please call me at 604-996-6862 or email me at sandeepahuja@ punjabinsurance.ca
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