Having a life insurance policy can be quite stressful at points. Making sure that the premium is paid on time, or making sure that you have not stepped outside of the stipulations placed upon you by the insurance company in order to keep the policy active can all be dogging tasks. But, it can definitely be worth it in the end if you wish to ensure that, in the event of your death, your beneficiaries are able to live a somewhat less stressful life.
The most stressful part, however, is if the paperwork is undermined unknowingly by your own hands, or when the insurance company conveniently forgets to mention that there has been a change in the policy. Whether or not it was a sneaky business move, it can be devastating to anyone that is attempting to recover after a loved one’s death.
Although it is important to find an appropriate attorney to help you through these processes, there are bits of knowledge that can help to mitigate future problems if you think and take care of them early on. We have compiled a small list of common issues that come up for people that are wanting life insurance policies.
Forgetting the Insurance Premium Rate has Increased
This is one of the more sneaky moves on the insurance company’s part. In most life insurance contracts, it does state that the premium will not increase within the current active window. But, that does not mean it will not increase when you attempt to renew the insurance policy. Many insurance companies do not fully inform you of this change. Instead, they will simply increase the amount that they request and charge you. This can be absolutely devastating if you are one that may be a little short on money each time, and are relying on a steady plan.
Mistaking what insurance plan you qualify for
If you work for a company or business, you will sometimes be covered under a group policy. This is also true for those that are generally in the armed forces or other federal employees. These group insurance policies will help to cover you while you are active within their branches, but once you are either let go or retire, many of their policies require you to switch from the group insurance coverage to a personal, individual one.
Since this may not be brought directly to your attention, you may go weeks or months without knowing that you are not actually covered, or that the premium payments that you are sending are not actually being used to help cover your policy. As such, it is extremely important to always ask and see if you need to switch after a drastic situation occurs.
There are quite a few other scenarios that may cause problems down the line, like situations involving divorces, or beneficiaries being denied the beneficiary title. These can all be broken down to you by an experienced life insurance attorney, who can work with you on ensuring that the simple, common mistakes generally made are avoided, to ensure that your policy will always be upheld, and that your claim will always be approved.