Owning insurance policies is very important – both medical insurance and life insurance. And to be aware of the things to do when you have an insurance policy is also crucial.
Many people are now availing insurances. Why? They have now informed the importance of having one. It is one way of protecting their family and their other investments.
And if you are one of those people who already owned insurance policies. Let me share with you the things to do when you have an insurance policy. And be sure to share it also with other policy owners.
Things To Do When You Have An Insurance Policy
1.) Be Sure To Pay The Monthly Premium On-Time
You should make sure that you are paying your premium on time whether its monthly, quarterly or annually. If you are late in paying your premium, a penalty fee may be imposed and the charges may accumulate.
The worst scenario that can happen also is that your policy can be void. All of your previous payment may not be returned to you.
The charge for late payment or voiding your policy serves as a way of disciplining you to save money. This is one of the indirect benefits that you can have.
2.) Get A Certificate Of Full Payment
When you already finished paying your premiums, immediately secure a certificate of full payment. This can be used as proof when claiming the benefits.
But if it is not yet fully paid, keep all the receipts in one place. Just in case, the payment that you made does not reflect you have proof to show. This can also help you in tracking how much of the total premium you still need to pay. By this, you can plan in advance and make necessary adjustments in making your budget especially during months that have an occasion.
3.) Maintain Contact With The Insurance Company
Be sure that you maintain contact with the insurance company or your agent. In case something “bad” will happen to you, your family or your beneficiaries know who contact. Thus, processing the requirements and claiming the benefits won’t be very difficult and there is someone who can assist them.
In case your agent retires or leave the insurance company, be sure to know who handles your policy.
4.) Keep All Forms and Requirements Updated
Forms and other requirements can change over time that’s why you should always update it. Do not forget to ask your agent if there are any changes in the requirements or a need to update your personal information.
Some of the instances that require you to update your personal information are when you have a new child or when you have a new spouse. You need to add them to your beneficiaries. Or when there is a change in your marital status – from being single to married.
Place it all in the envelope or other file organizers and make a checklist. By this, tracking of your lack requirements is easy to do. You can write also outside the envelope the name of the insurance company, type of policy, and the contact person.
So, whatever happens all the needed requirements are already in one place and your family have an idea.
5.) Inform your family and other beneficiaries
Do not forget to inform your family or other beneficiaries regarding on your insurance policy. How can they know that they can receive some money if something “bad” will happen to you?
In the first place, one of the reasons why you avail insurance policies is not just for your self but also for them. Inform them also where you placed the necessary documents. Again, it is better to place the documents in a single envelope or in a file organizer.
Summary
Securing an insurance policy should be included in your bucket list in the financial aspect. It should be one of your major financial goals or your must-have priorities in life.
Like in any investment, you should take good care of it, or else it will become naught. It is really unfortunate if your beneficiaries cannot claim the benefits because you did not do your part as the policy owner.
Did you already avail of insurance policies? What are the additional tips that you can recommend to other policy owners? Share it below in the comment section!