Life insurance makes sure that your loved ones are taken care of after you pass away. If you die unexpectedly and you don’t have life insurance, you could be leaving your surviving family in a difficult financial situation. Having life insurance gives you the peace of mind knowing that your family will be taken care of financially when you’re no longer around. But before you decide that you’ve taken care of everything you should make sure you haven’t made on of these mistakes or your loved ones may not benefit from your life insurance.
Don’t lie when you apply for life insurance. Not telling the truth on a life insurance application is one sure fire way of having your application denied. If you already have a policy issued, there is typically a two-year contestability period. If your insurer finds out you been less than honest they could cancel your policy.
Like anything else, you must make your payments. There is usually a 30-day grace period for payments and sometimes more, but you need to make a payment to keep the policy current. Failure to do so could render your policy not in force when you die.
Once you have a life insurance policy, by all means tell your loved ones about it. If you die and your loved ones aren’t aware that you have a life insurance policy, it could produce a lot of unnecessary problems for them. While most life insurance companies conduct database checks for death of policy holders so that beneficiaries will get paid, not all insurers do it in a timely manner. Your family will probably need the money when you die but if they don’t know about it, it could take a long time for them to receive what’s coming to them.