When you set up a life insurance policy, at the time your policy commences you will be sent a life insurance “policy document”. The policy document is a copy of the legal agreement between you and the life insurance company, and on it the insurer will outline that you are covered and the terms and conditions of your life insurance policy. When you receive your policy document it’s very important to check it and make sure that it is accurate. We will look at some of the main areas to look at when you review your policy document.Be careful while you buy life insurance policy.
First, you need to check the basic details on the document. For example make sure that your name is correct and your date of birth is accurate. If not, the life insurer might have your date of birth recorded incorrectly (which could even have an impact on the cost of your insurance).
Next, on the document there will be a section which outlines the amount of cover that you are insured for. This is an obvious section to double-check, as this is the New Zealand life insurance sum that would be paid in the event that a claim ever needed to be made. For this reason, it’s vital that the sum shown matches the amount of life insurance cover that you intended to apply for – so confirming this figure is wise.
The New Zealand life insurance policy document will explain the conditions under which a claim can be made. This section will outline whether your chosen sum is paid out only on death, or also in the event of certain health issues occuring. Confirming these will mean that you understand what your policy is designed to do – and this will tell you whether it fits with what you need from your policy.
Other important sections are the parts of the life insurance policy documents which explain how you can change the policy in the future. For example many policies offer the ability for you to increase your insurance in the future without need of a further medical assessment if you experience certain life events. Common examples are life events like having a child or taking out a mortgage. If your policy has this type of feature, it will be explained on your policy document.
A similar section will explain any additional features that your policy has. For example many life insurance plans will have an immediate payment that is made upon death to help with funeral costs (with the rest of the insured life insurance amount being paid later). How this type of feature works and any terms and conditions associated with it will be shown on your life insurance policy document.
Finally, your New Zealand life insurance policy document will also outline the exclusions that are on your policy. All insurance policies will usually have some exclusions (either temporary or permanent) and being familiar with these is vital as it ensures you fully understand what your policy will and won’t cover and the conditions under which you are able to make a claim.
Once you have reviewed your policy document it’s important to keep it in a safe place. If you ever lose it you will be able to get a replacement one from your life insurance company, however this can lead to delays and costs in some cases – so it is best to keep it somewhere you are able to access it in the future.