Introduction:
Life insurance is a pure blessing for the people of Odessa, Victoria, and many such cities of Texas, who have dependents. It gives the insured and their loved ones peace of mind in an untimely death. However, having a life insurance policy is just the first step; it is vital to regularly review and update the policy to ensure it meets your needs. Unfortunately, it remains the same as when you first purchased it most of the time—however, there are several reasons to review your Texas life insurance policy annually.
You need to ensure that there are any changes in your life circumstances that could impact the policy. If yes, what impact? For instance, if you have a child who is financially dependent on you, your life insurance coverage will need to be increased. Do any such changes are required in the cover or the sum assured?
This article will discuss some of the key reasons to review your policy annually.
Why Reviewing the Policy is Necessary?
Reviewing your life insurance policy annually is a must task to do. You will be well-prepared and know what your life insurance policy covers in any emergent situation. It should not be like buying a life insurance policy, and you cannot claim
because of the uncovered risks.
The life insurance company too will review their underwriting criteria every year, and your health condition might have changed, which might impact the policy’s acceptance. In some cases, you can be declined for a policy, or the premiums could increase.
Reasons to Review Policy:
Changes in Income:
You want to amend the life insurance policy suitably whenever you increase or decrease your salary structure or the income you are earning. Because the premium amount for a particular sum assured is directly proportional to the person's income, along with this, with an increased income, the insured wants more coverage and protection at the time of his death, Whereas, with a decreased income, the person wants to reduce the burden of the premium amount.
Growing Family:
The existing life insurance policy may get replaced by the new insurance policy as the new family members are being brought in. Compared to when you bought the policy at the time your children are born, there is a lot of difference in the number of covered people and the benefits you would like to have. To avail of the higher death benefit, you might need to review your life insurance policy.
Beneficiary Checkup:
Your beneficiaries are the people for whom you have taken so much of the responsibility of ensuring their future. So, why not take a step further and ensure that their future is taken care of even after you're gone by checking your life insurance policy beneficiary designations annually?
One reason to check your beneficiaries every year is that designations can change over time. Divorces, births, deaths, and other life changes can affect who your beneficiaries are. Suppose you don't review your policy annually. In that case, you may not have the most up-to-date information about life insurance companies' benefits if something happens to you.
Health Changes for the Better:
Time changes, and you eventually start realizing that you have been neglecting your health for a long time, and it's about time you do something about it. You start with quitting the smoking habit, going to the gym, and eating healthy. So, it is necessary that you also review your life insurance policy with your healthcare provider. For instance, if you have left smoking, the terms of your policy may change from smoker rates to non-smoker rates, substantially lowering your monthly premiums.
Health Changes for the Worst:
When your health starts deteriorating, the life insurance companies cannot increase the premiums of the existing loan. However, you can opt for the policy conversion feature if you have term insurance. You can easily convert the term insurance into a whole life insurance policy, which will offer permanent coverage. However, major health issues could lead to an expensive life insurance policy.
The Bottom Line
When you know the exact things to review, make sure you sit with your life insurance provider and check everything in detail. That will help you stay tension free about the future of your loved ones if something unfortunate happens to you.
You will be at peace that all those hefty premiums you paid all these years will not go waste, and most importantly, you are fully secured with a valid life insurance policy.
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