Basics To Know And Review About Your Insurance Policy

Type Of Policy

Is it health insurance, life insurance, long term care insurance, disability insurance, property and casualty insurance, or auto insurance? If you are reviewing or summarizing a life insurance policy, specify what type of life insurance policy it is : term life, whole life, universal life or variable life.

Insurance Carrier

Who is the insurance company that provides the insurance? Keep track of a customer service number you can call, or the contact information for your insurance agent.

Policy Number

You will always need your policy number when you call and ask questions about an insurance policy.

Date Issued

It is important to know the date the insurance was issued especially when it comes to life insurance, as term insurance has an expiration date, and permanent insurance will have a surrender charge that may apply if you cancel the policy in the first five to twenty years.

Premium Required

Always keep track of the premium you pay and how frequently it is paid. In the case of a whole life insurance policy, the policy could be paid up. In that case if you were creating a policy summary you would write " No premiums required at this time as premiums are being paid by the dividends inside the policy. " For other types of insurance, you might list something like “Premium of $225 per month paid by automatic deduction form checking account. ”

Insured

Who do the benefits apply to ; you, your spouse, a dependent child?

Once you understand the basic components, you can review the details of the insurance policy.