(888) 78dd8-1052

Speak with a Licensed Adviser

3 Must-Follow Tips to Guarantee that Your Life Insurance Policy will Pay Out

by Scott G on October 27, 2012 · 1 comment

Post image for 3 Must-Follow Tips to Guarantee that Your Life Insurance Policy will Pay Out

Life Insurance Payout

 

One of the most common questions and valid concerns I hear in regards to life insurance is “how can I be assured that my life insurance policy will pay out if my family needed to collect on it?”
You’ve been paying premiums every year to the insurance company, and you want be assured your family will receive the benefit in the event of unforeseen death. One reassuring fact is that life insurance policies are contracts.  As long as you don’t void the contract, it will pay out. Here are 3 tips to Guarantee that Your Life Insurance Policy will Pay Out:

1. TELL YOUR BENEFICIARY about the policy. I know it sounds like common sense, but your beneficiary will have to be the one to notify the life insurance company about a claim. Some of the top insurers recently had to payout out huge settlements for failing to take direct steps to track down the beneficiaries. Tell your beneficiary about the policy, and keep all policy documents in a safe place!

2. Be honest on your life insurance application. There is a 2-year contestability clause on most life insurance policies. This means the life insurance company has the right to investigate the claim and deny payout if it discovers misrepresentation or concealment on your application if you were to pass away in the first two years of the policy being issued. (Also, in the case of obtaining insurance through fraud, the two-year time period is not applicable.) So as long as you don’t lie on your application, you won’t have to worry about being denied a payout.

3. Choose a highly rated and financially strong company. There are MANY (around 900) life insurance companies out there. Make sure that when you are researching companies, you are looking at companies with least an “A” rating or better by A.M. Best. A.M. Best is the leading provider of independent ratings in the insurance industry. They assess the insurance companies’ ability to meet their obligations and pay claims to their policyholders.

Finally, please review your policy when you receive it. Read over the terms, conditions and exclusions. I know it’s boring but the short amount of time it will take you to read over the policy will give you the peace of mind knowing your family will be taken of in the event of your sudden absence. If you have any questions don’t hesitate to ask your agent or even me.

If you follow these tips you will have the peace of mind knowing that your life insurance policy will pay out.

Free Instant Unbiased Life Insurance Quotes

 

Comments on this entry are closed.

{ 1 trackback }

Previous post:

Next post: