Term Life Insurance - An Important Purchase
Being approved for term life insurance is a great thing but what do you have to show for it? Hopefully your premium payments are small but don’t look at your term life insurance as an afterthought or a small purchase. There are many big purchases a person can make in their lifetime. Maybe it’s a home, car, rental property, home remodeling or high cost appliances. With these types of purchases you have something tangible; something you can see, touch, and use.
Although your term life insurance policy is not something you see or use on a daily basis, you know it’s there based on the monthly payments being taken from your bank account and the fact that you remember filing the policy away when you received it.
I’ve spoken with many people who are trying to find out if they have life insurance. At some point in time they purchased it but they do not know if it still exists. Paperwork and polices get lost and in addition to this, insurance companies may merge with other companies or get bought by another company, thereby creating further confusion as to what happened with the original policy.
These examples are reasons why you need to treat your life insurance policies as an important purchase. You keep your car tuned up, you put a new roof on your house and buy new appliances when the old ones wear out right? You need to do the same with your life insurance policy. Keep a record handy of the highlights of the policy. Include things like the name, location and phone number of the insurance company; the type of life insurance policy it is; how much it pays out to your beneficiaries; who the beneficiaries are; the policy number, and when you purchased it. You may also want to periodically review your policy to make sure it still meets your needs as the years go by. Keep the policy in a fire proof lock box or safe. Keep the policy highlights in an easy to find place in your home.
There are many reasons to consider your life insurance policy as an important purchase – peace of mind for your family is probably the most important.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.