Clear communication is important when it comes to your life insurance policy. Life insurance policyholders should inform their primary beneficiaries, as well as their contingent beneficiaries, about the existence of a life insurance policy that names them. If there are valid reasons not to inform the beneficiaries—if, for example, they are young children—it is a good idea to provide this information to the executor of your estate.
When a loved one passes away, locating a life insurance policy can be a challenging but necessary task. There are some steps you can take to get the information you need. Here are a few tips to guide your search.
Search the deceased's documents and correspondence.
In many cases, evidence of policy and any relevant information
If unexpected expenses come up and you can’t pay your life insurance premium, you should know the possible consequences. The effect depends on the type of policy and coverage you have and the policy terms and conditions.
Term: If you stop paying premiums, your coverage lapses.
Permanent: If you have this type of policy, you will have the following choices:
“Burial insurance” usually refers to a whole life insurance policy with a death benefit of from $5,000 to $25,000. As its nickname implies, people buy this type of policy to provide money for funeral and burial costs for themselves and/or family members. It is possible to buy a policy after answering a few health-related questions on the application and with no medical exam.