Author Topic: why you should review your life insurance policy  (Read 184 times)

genawilsom

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why you should review your life insurance policy
« on: October 12, 2018, 10:32:53 AM »
Life Insurance Policy

It is often a once in a lifetime event of buying life insurance policy. But the important part of financial planning is reviewing your life insurance policy. You must make sure that you have the right level of cover at the right price and terms even if you are a businessman or an individual. It becomes even more important to review the policy on the annual basis if you have an investment-linked life insurance policy.

Start this new day by reviewing your life insurance policy with the help of our 5 reasons:

Why should you review the performance for life insurance policy

If policyholders have an investment-linked insurance policy, then there is a lot for them to consider in the stock market with low or negative returns in many emerging market equity and bond markets. It is important to review the performance of your policy regularly to ensure it is still on track to pay out the assured sum. A yearly formal review of the investment performance for underlying insurance policy should take place with the number of factors including: but with sustained low-interest rates effecting cash returns and significant gains in the most major developed country.

How can I buy cheaper life insurance policy?
In recent years the cost of buying life insurance has come down due to several reasons such as:
1)    Life insurers can more accurately price your premium with the help of more advanced medical testing techniques. Hence the price can be lower than the historical pricing of policies.
2)    Longer life of people.
3)    The premium prices drive down due to intense competition in the insurance market.
4)    People can take appropriate medication to help them stay healthy and less prone to the serious condition due to better and more accurate medical diagnosis.

By following the above-given changes it may be possible to take advantage of lower insurance premium and buy a cheaper insurance, which will save your money. There are many insurance companies such as AIG, AVIVA where you can buy newbielink:https://www.easyinsurancehub.co.uk/critical-illness-insurance-cover.php [nonactive] for your health issues.

Are there any changes in your circumstance?
Have your needs changed and is the current insurance policy still appropriate for your needs? The review of your insurance policy could trigger due to the following circumstances:
1)    Have you taken out a large mortgage against your home?
2)    Have you started a family?
3)    Are you retired recently or planning to retire and need to take out your own life cover once the insurance provided by your company ends?
4)    Have you considered or undertaken estate planning?
5)    Did your financial adviser recommend a review of your life insurance policy?
6)    Have you sold a business?

A formal review can help you decide if you need to take out life insurance cover whatever your circumstances are.

Life insurance and suicidal attempts

It would be much more difficult to obtain the life insurance if there has been a suicide attempt in the past but it can still be obtained with the ratings of higher premium quotes. As similar to suicidal thoughts, the same time frame for postponement will apply to suicidal attempts. But if there are multiple attempts then it will result in a flat decline without any regard to the time frame. If you apply for insurance your underwriting will pertain to all mental disorders and depression as well as bipolar if the suicide attempt was more than a year ago with no previous thoughts of suicide. A clear note from a psychiatrist stating that it was a onetime incident will be needed. If your application is approved, then your rates might be higher than a standard premium.  Not all but many companies will still offer coverage for life insurance after an attempt at a suicide.

What are the Payouts after suicide?

Usually after two years which is a pre-determined time frame after the policy was issued the contestable clause possibly allows the insurance company to investigate a cause of death. The right to decline payment of the death benefit can be reserved by the insurance company if a cause of the death is determined to be a suicide. The paid premiums in such case may be returned or may not be returned to the payer. Remember to stay completely honest to avoid the complications in the future while completing your application. If you receive a very inflexible offer or if you are declined from a few select companies due to your suicide history, then don’t be surprised.

Life insurance plus suicidal thoughts

Regarding your suicidal thoughts and life insurance, there is a bit of a grey line which depends on your history. Your application for insurance may be categorized as the history of depression which also depends on your records due to which your rates will be affected resulting in a higher premium.

Your current, as well as past medications usage, is one of the important factors the underwriter will focus on. There might be a negative toll on your rating for issues with mood swings or bipolar disorders and your premium price can also increase if there are other medical concerns. There’s a chance that most of the carriers will not accept your application if you have suicidal thoughts in the last year. Hence the time frame is also the key while applying for life insurance. You will be qualified only for standard rates after a year or two passes. If you can show the detailed history of improvement or stable health you could begin to see the better rates for each year thereafter.