What Are the Responsibilities of a Life Insurance Policyholder?

What Are the Responsibilities of a Life Insurance Policyholder?Understand what you need to do as a life insurance policyholder.  

Most people purchase insurance coverage because they know they need the protection. Then, they promptly forget about it and hope that it works when they need it. Although it’s a good rule of thumb to review your coverage at least annually, this tip becomes especially important when dealing with life insurance. As a life insurance policyholder, you want to make sure your coverage kicks in for your family and loved ones when they need it most. Take a look at the responsibilities and duties that are in your hands.

  • Know who your life insurance company is.

The last thing your family needs is to rifle through your insurance documents to find out whom to contact. Make sure that you clearly note down and tell your loved ones and family about the insurance company, agent, and policy that have their backs.

  • Make sure your beneficiaries know.

You’ll have to list your beneficiaries in your life insurance policy, so it’s wise to keep them in the loop from the beginning. If they are young children, it might be wise to contact your attorney or someone else who will be responsible for the policy information in the event that something happens to you.

  • Update it after major life events.

It’s advisable to review your life insurance coverage bi-annually to ensure it is in line with your needs. However, if you experience any milestones, you should take a moment to call your insurer and find out how that affects your life insurance policy. A few of these life events include:

  • Getting married
  • Having a child
  • Buying a home
  • Getting a promotion/changing jobs

 

While nobody likes to think of their own demise, it’s prudent to consider what financial ramifications your death could have on those you leave behind. The team at Kurt Rolf Insurance Agency can help secure the right life insurance for your family.