Understanding Your Approved Policy
- What are my payment options?
- Can I change my beneficiary? (See also “How do I choose my beneficiary”)
- When do my premium payments begin?
- When does the insurance company consider my coverage active?
1. What are my payment options?
Though it varies by company, most life insurance companies offer several different modes of payment; monthly, quarterly, semi-annually and annually. Usually the monthly option is only available through an automatic draft from your bank account, while the other modes are sent out as physical bills. Please note, the cheapest form of payment is always annually, as other modes have small service fees or higher 12-month total charges.
2. Can I change my beneficiary? (See also “How do I choose my beneficiary”)
Yes. Your beneficiary can usually be changed at any time during the application process or after your policy is issued. All that is needed is a signed beneficiary change form submitted to the insurance company to make this change. In particular instances, a beneficiary designation may be made irrevocable.
3. When do my premium payments begin?
Your first premium payment will cover you from your policy’s issue date to the next frequency of payment.
4. When does the insurance company consider my coverage active?
Once the insurance company receives the completed requirements, your policy is considered officially in force.