Insurance Policy Importance and Usage when Claiming Benefits

Posted by Grace under Insurance on February 12, 2016

Know and understand what is insurance policy all about, its usage and importance. Insurance Premium is the total amount to be paid for an insurance by a policyholder to keep their life insurance or health insurance active. As a policyholder, you can pay your insurance premium per month, per quarter or per year. Today, we need to talk about other terms or words used in buying an insurance.

When buying an insurance, you should know the different terminologies used by an insurance agent when he or she is offering an insurance to you. If you are not familiar with the terms, you might be sound akward or not professional. It is necessary to know the meaning and definition of these words so that you can understand easily what the insurance agent is talking about.


What is Insurance Policy?

An insurance policy is also called as a insurance contract. It is a written document (a printed material) wherein you will see the schedule of benefits, premium and policy data.

In the policy data, the name of the insured is written, the age of the insured person, the face amount, the policy number, effective date and termination date. It is important to double-check this information once you received your insurance policy.

You have to read the terms and conditions read in your insurance policy. Please be aware that most premiums are increasing yearly. just look at the attached schedule of renewal premiums. The insurance company will pay the Face Amount of your insurance policy to your beneficiary if you died prior to the termination date subject to the provisions of your insurance policy.

Insurance Policy Reminders

Important: Keep your insurance policy in a safe place but make sure it can easily be found by your spouse, kids, or other family members. Do not forget, the insurance policy is the document needed when your beneficiaries will claim the benefits (just in case you died).

In our next topic, we will discuss how much Face Amount or insurance coverage should you buy? And, how to save money in buying a health and life insurance. So, stay tuned to Insurance-Premium.Net to get more free information about insurance.

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