Reading And Understanding Your Life Insurance Policy
Most people hate the thought of reading a life insurance
policy (or any insurance policy, for that matter). However, if you can find the time and muster the patience, it's probably a good idea to read through your policy. If you do, you'll understand your policy better and gain an understanding of your rights and obligations under the contract.
The parts of a life insurance
A life insurance policy contains the following parts:
A cover page that identifies the insurance company and the type of plan, offers your right to return the policy within 21 days if you're not satisfied, and is signed by an insurance company officer.
A schedule of benefits and specifications page that describes the amount of benefits, the premium and other charges, the insured, the issue date, ...
Term Life Insurance
Term life insurance
provides life insurance
coverage for a specific time period (the term). It is often referred to as pure insurance. The face amount of the policy is paid if you die during the term of the policy. When you live longer than the term of the insurance coverage, nothing is paid, as there is no cash surrender value.
Who should buy term life insurance?
Term life insurance is appropriate for situations when there is a high need for insurance b...