Many people struggle to comprehend their life insurance coverage. The issue with life insurance is that policies may be confusing. It feels great that you have bought life insurance. But before you sign it, spend a bit of time reviewing it. Here are some crucial phrases and sections of your insurance to read carefully.
Policy Terms and Definitions
Don’t worry if you’re overwhelmed by insurance jargon. The most prevalent terminology in your policy are:
- Death benefit – the sum paid out if you perish.
- Policy date – the day of issue or activation of the policy.
- Premiums – the monthly or yearly fee to keep the insurance active.
- Policy owner- the individual who applies for and pays the premiums.
- Insured – the policy owner.
- Beneficiary/Beneficiaries – the person(s) or organization(s) designated by the policyholder to collect the payout.
Cover Page
The cover page summarizes the life insurance plan. This highlights the policy’s key points. It typically contains the policy owner’s name, the insurance provider’s name, the type of policy, and general coverage details.
Schedule of Benefits
This part, often known as a declaration page, contains the policy information. This section of the policy also details your policy. The information included are
- The policy’s owner.
- The insured.
- Beneficiary.
- The policy type.
- If appropriate, term duration.
- Policy number.
- Policy date.
- Death benefit sum.
- The policy’s rate class.
- Premiums and payments.
- Policy riders.
Coverage Details
This portion of the policy outlines the plan’s conditions, along with the policy’s “regulations” and what it covers. It usually has:
- A statement that lists the policy owner, insured, and beneficiaries.
- Grace period details.
- A schedule of payments shows costs and whether payments vary over time.
- Reiteration of policy information if payments are late.
- Process of making a claim.
- Exclusions of the insurance, including non-payment of claims.
- All coverage riders.
Conclusion
If you still don’t know how to interpret your life insurance policy, specialists can help.
At Lapeira & Associates LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (855) 963-6900. Get your free quote today by CLICKING HERE. The coverage discussed is not guaranteed. Please contact our agents to make sure you have adequate coverage and your needs are being met. We are happy to help!
