Do you know where your life insurance policy is at this very moment? Chances are you may not know off hand but that’s what it’s like for many people. They receive their documentation when they take out the policy, check through it and then it’s filed away.
What this means is that your documentation and your policy are not going to see the light of day for a while. The good thing is that if you have been paying your premiums the you probably haven’t had any significant changes to it since you took it out. However, one area that often gets forgotten about is where your life has had changes.
This might be something as simple as an address change that you’ve not bothered with, change of telephone number perhaps and maybe even a change of a bank account – which of course results in there being a lapse in the policy, which means all your initial efforts have been wasted.
What you might want to review
We all know that life changes. We go from one child to two or even three. We change jobs, move home to accommodate those changes which in turn means it’s a good idea to take a look at our life insurance.
If you’ve given up smoking for two years but you’ve not let your insurance company know, this could also affect your policy. After all, if you knew that your premiums could be lower, wouldn’t you want to do what you can to make that happen?
What all this serves to tell us is that it’s a good idea to have an annual review of your policy. Whether that’s as simple as you taking the documents out of a drawer and running through them to check that everything’s still relevant, or whether you choose to seek out professional financial advice – it’s always worth doing it.
After all, if you suddenly realise you’ve got additional debt you need covered, you will want to make sure that your family are covered in the event of your death, just as much as you will want to make sure your additional children get the protection they need should something happen to you.
Equally as a final thought, if you have got divorced then you may want to check the situation with regards to your policy beneficiaries. This will ensure that the people or person you want to benefit gets that benefit without problems.