When life insurance is used to meet the changing
needs of your family, it can be one of the most important parts of your
economic security program. Consider the various types of life insurance
policies that might meet your needs. Then, before you buy, check the costs
and features of policies from different companies. Read any policy before
buying it to be certain it includes everything you have asked for.
Every two or three years, review your situation and the amount of insurance
protection you have to see if your insurance needs have changed. Be sure
the beneficiaries you now want are the same as those named earlier.
It is a good practice to keep your insurance policy (or policies) in a place
where your beneficiaries can locate it easily in the event of your death.
Include the name and phone number of the agent to be notified. If a policy
is stolen, lost, or destroyed by fire, ask your insurance company to replace
it. Record your policy number in a different place from where you keep the
policy itself so that you can get a replacement easily. Let the family,
a friend, a relative, or your lawyer know where your policy is kept, and
ask them to notify the agent at once in case of death.
Be sure to let your insurance company know if you change your address so
that your premium notice will not get lost. With some types of policies,
your protection stops if you do not pay your premium on time.
In general, your family gets no more than it pays for when buying life insurance.
By planning carefully, however, you may get more insurance protection at
the time you need it most without increasing the amount you pay in premiums.
It is up to your family to build a program to meet your changing life insurance
needs.