We all know what it feels like when we suddenly realise we’ve not done something we should have done. It could be something silly – like forgetting to record our favourite programme or it could be a little more serious when we suddenly discover we’ve left the passports behind en-route to the airport.
What is Life Insurance For is today going to look at one thing you won’t want to forget – your life insurance policy. Doesn’t matter what type of life insurance policy you have either – particularly when you want to make a claim.
It is not surprising perhaps to discover that many people end up letting their life insurance policy lapse, which means they have absolutely no cover should something go wrong. Another aspect to this is that when your life changes, your life insurance policy doesn’t. Therefore, perhaps the new children and the higher mortgage and living costs haven’t been accounted for should something happen to you.
Some people try to account for these changes and perhaps take out additional cover, but the main issue is trying to keep track of those payments. Perhaps the direct debit is listed under a name that is not familiar – which can result in you cancelling it perhaps when you can’t remember what it is for.
Another reason for lapses in life insurance policies can be as simple as us moving. Perhaps we forgot to change the address on the policy and as we are paying annually, the one year the bill came through it was to the wrong address and therefore was never renewed.
The sad fact is, it’s so easy to let things like this happen and then when the chips are down and you really need it you discover that you’ve not got the cover you thought you had and end up in a bit of a situation.
So if you have life insurance – how can you avoid a lapse on your policy?
Consider a direct debit for annual payments and put your policies with all the other household bills. This may seem a little over-zealous but remember, if you move you will no doubt use your bill box to make contact with your utilities providers – and you can simply do your insurance at the same time.
Don’t leave renewals or updates until the last minute. Consider them part of any living cost and it’ll be a lot easier to sort out any changes so your policies don’t end up being out of date or completely void.
We all know that life can be busy and that sometimes it can be easier to put something off until a more convenient time, but in the long-run it could cost you dearly. Remember you took the cover out to make sure your family are provided for in the event of something happening to you. The worst thing you can do is pay it for ten years and then let it go. All that money invested for your financial security and it can disappear very quickly!