Details To Review About Your Insurance Policy
Summary Of Benefits – You Must Look At This In Detail When You Review An Insurance Policy
This category could have many sub categories. Here are a few examples.
- Life Insurance Policy Review And Summary
For life insurance you want to keep track of the total death benefit, and any additional riders such as a waiver of premium in the event of disability.
In addition, track the cash value, and review the performance of investments inside a variable life insurance policy. When conducting a thorough life insurance policy review, if your policy has cash value, you will want to call the insurance company and request an in-force illustration.
- Long Term Care Insurance Policy Review And Summary
For long term care insurance you want to know the “per day” benefit, and how long the benefit would last. For example, your policy might pay $100 per day for up to 500 days in the event that you qualify for long term care benefits.
- Health Insurance Policy Review And Summary
For health insurance, make sure you understand the basic benefit such as “policy pays 80% of covered services after I make a $50 co-pay.”
- Disability Insurance
For disability insurance you want to know the monthly benefit that is payable, how long it would pay you, and how the insurance company defines disability, so you know what circumstances would make you qualify for benefits.
- Property And Casualty Insurance Review
For property and casualty insurance, it is often best to ask your existing insurance agent to conduct a thorough policy review on your behalf.
Ask them to explain to you how your property would be replaced in the event of an accident, theft, or vandalism. For example, if your computer was stolen, would you get enough to buy a new computer, or would the insurance company only give you the value of your old computer, which may have been several years old.
Restrictions – It Is Important To Review Any Restrictions That Apply To Your Insurance Policy
This category includes things such as waiting periods or deductibles that need to be met before coverage applies. For example, long term care and disability policies may require a 30, 60, 90, 180, or 360 day waiting period before benefits are payable.
Other Information
Write down any other relevant information that is important to review about the insurance policy. This section would include items such as loans against life insurance policies, riders that provide benefits for a spouse, or expiration or renewal dates if something must be done with the policy by a particular time.
