You have to understand the rights that you have when it comes to your life insurance policy as it may affect your family greatly if you don’t. You should find a policy that will fit the needs of your family after you’ve passed away because it’s easier to find a policy than it is to try to negotiate a change in policy.
Your rights may change depending on what type of life insurance you get. First there is whole life insurance which is the most known type of life insurance. This life insurance provides a monthly rate of money for your beneficiaries after you die. Term life insurance is less expensive but lasts only for a set period of time.
When you choose a policy you will be able to have what’s known as a free look period. This period will allow you to look over your policy and the terms and conditions. Depending on the company that you go with you’ll have between 10 and 30 days to do this. While you have this right in all states, some states actually require the company to attach a notice of the law to your policy. You should use this time to look over the fine print of your policy so that nothing unexpected comes up later. If you find something that you don’t like in the policy or terms and conditions you can return the paperwork along with a written statement stating that you want to cancel it and it will become a void policy.
You should use this time to take the policy to your lawyer and look for any loopholes that the company may have put in the fine print. While the policies are supposed to be easy to review they are often times not. Due to the technicality of the wording that they use it may become confusing. Also in some cases an agent might not fully explain some of the clauses that are in the fine print. It’s best to have a professional look over the paperwork after you have.
Understand that it will be harder for you to get life insurance down the road if you decide to get term life insurance now. Since older individuals are not expected to life as long they are usually subject to higher rates. It usually costs a fair amount of money but you can arrange the payouts and monthly payments to your liking. Also if you’re an older individual looking for life insurance then you should consider offering an initial lump sum of money to the insurance company.
This will not only lower your monthly payments but it will help you get a policy with that company. Educate your family so that they know that they may be able to negotiate the payment policy even after you’ve passed away.