How Should a Life Insurance Policy Be Read?
When you decide to get life insurance, it’s important to know what your policy covers. You may understand your life insurance policy’s benefits and obligations better if you read it all the way through. Ordinarily, life insurance plans have set components. If you know the typical parts of a life insurance policy and what is covered under each one, it might be easier to figure out how good your policy is (or isn’t).
Analyzing Your Life Insurance Policy
The first several pages of life insurance policies are usually a summary. Here you’ll discover the policy’s benefit amount, payments, and insured’s name.
Many insurance providers offer a policy cover page with the following information:
- Insurance company name
- Insurer officer’s signature
- Type of life insurance
- Free-look period details
The first page of your insurance usually contains the schedule of benefits and specifications. Generally, it includes:
- Benefit amount
- Premium amount
- Insurance provider’s name
- Date of policy issuance
- Policy number
- Rate class
Coverage Specifics
The most important policy details will be discussed in the insuring agreement section. This contains what the insurer covers and your rights as a policyholder. The insurance agreement has several elements and subsections that vary per policy. Your insuring agreement may include some of the following subsections:
- Definitions
- Illustrations and tables
- Endorsements
- Settlements
Extras
Your life insurance policy may contain additional provisions. The extra provisions depend on the state’s insurance rules, the insurer, and the type of policy. Provisions may include:
- Details of the grace period
- Your application
- Incontestability provision
Keep in mind that you should review your insurance coverage at least once a year and after any big changes in your life to make sure it still meets your needs.
Still struggling to make sense of your life insurance policy? Contact our team of experienced insurance agents. We’d love to help.
