Having life insurance is one thing. Understanding it is another.
There are different types of life insurance, and each works differently.
Term life insurance provides coverage for a specific period of time. If the insured dies while the policy is in force, the policy generally pays the death benefit to the named beneficiary according to the policy terms.
Permanent policies are designed differently. Whole life, for example, can remain in force for life as long as required premiums are paid and the policy remains active. Some permanent policies may also build cash value.
Group life insurance is often provided through an employer, union, association, or other organization.
It can be a valuable benefit, but it may not follow you when you leave the group or employer. Coverage amounts may also be limited.
Your beneficiary is the person or organization you designate to receive the policy's death benefit.
You can generally name more than one beneficiary and determine how benefits are divided.
It’s a good idea to review your beneficiary information after major life changes such as:
Marriage
Divorce
Birth or adoption of a child
Death of a beneficiary
Major family or financial changes
Do you know:
What type of policy you have?
How much coverage you have?
Who your beneficiary is?
Whether your coverage is tied to your job?
How long your coverage lasts?
Whether your policy has additional benefits or riders?
You don’t necessarily need a new policy just because you want a review.
Sometimes the first step is simply understanding the coverage you already have.
No pressure. No automatic recommendation to replace what you already have. Let’s start by understanding it.