Provisions in a life insurance policy are contracted statements that life insurance policies are required to follow. These are legal provisions prepared and stated in your life insurance policy. All life insurance policies have provisions.
Some of the more common provisions in insurance policies include but are not limited to; a grace period, entire contract clause, incontestable clause, misstatement of age clause, war clause, suicide clause, double indemnity clause, policy change clause, and a payer benefit clause.
The grace period clause is a period of time when changes can be made. This can apply to anything within the insurance policy. The war and suicide clause make special provisions for death by suicide or in wartime. The policy change clause usually states the terms in which a insurance policy can be changed and to what degree.
Importance of Provisions
The provisions aren’t there to make your life harder they in fact make it a little easier. While some of the provisions are in there to protect the interest of the insurance company, many of them are there to protect the policy holder. It is important to know what specific provisions are written into your policy. You can always request that changes be made or extra provisions be placed into the policy before you decide to sign on the dotted line. Insurance companies aren’t always forth coming about certain provisions in their policies but many are open to questions.
Know Your Provisions
It is very easy to incur a penalty to your life insurance policy if you do not know what the specific provisions of your policy are. Read through your policy carefully and ask questions about things that you don’t understand or are unsure about. It is better to ask too many questions than not enough, especially when it comes to your financial future.