When you get married or divorced, you might want to review your life insurance beneficiary. Being the owner of the policy, you have every right to change the beneficiary anytime. Call your agents to do so.
When you do this, you should avoid common mistakes like naming a minor as a beneficiary. That’s because insurers can’t give the payout to a minor until a guardian is appointed – and this process wastes time and money in court costs. Naming your estate is a mistake as well because the proceeds will go through the legal probate process, taking months to years.
Get more coverage
There are many instances when you should get more coverage – having more children or being able to afford more coverage. If you have specific needs, consider getting term life insurance.
If your policy has a guaranteed insurability rider, on the other hand, you can get more coverage without applying for a new policy. Generally, this feature allows you to add coverage only at certain times of your life like having a child. The additional price is based on the amount of coverage, your age, and your health at the time you got the policy.
Changing term life to permanent life insurance
You can convert most term life policies to permanent policies (like whole life or universal life). The type of permanent insurance available will vary according to the insurer that issued your term life policy. Remember though that you don’t need to convert the entire policy. You could choose to convert only a portion of it if you wish. When converting, check the terms of your policy.
Surrendering permanent life policy for the cash value
You can choose to cash out on your permanent life policy. But, of course, that means your beneficiary can’t claim insurance when you die. Consider cashing out only when:
- You don’t need life insurance anymore.
- You don’t owe the insurer a surrender fee for cashing out anymore.
- You’ve had the policy long enough that the cash value has already built.
Whether you’ve just bought a policy or you’ve got one some time ago, it’s always wise to review it from time to time. Bear in mind that your needs change over time. For every significant change in your financial life, call your agent and have your life policy reevaluated.
Here at Cornerstone Insurance Agency, we are dedicated to helping people get the peace of mind they need to go through life. We offer life insurance policies that will help families cope financially in the event of the policyholder’s death. Get a free quote from us by clicking here. And feel free to call us at (770) 413-0807 or visit us today!