People that have insurance policies tend to assume that everything is in perfect order as long as their debit order goes off every month without a glitch.
With roughly four months before the end of the current year, now might be the best time to spring-clean your insurance commitments to ensure that everything is as it should it be.
Lee Bromfield, CEO of FNB Life says whether it’s a funeral plan or life cover, you need to review your policies at least twice a year. This, he says, is because people’s lives and circumstances change very often for a number of reasons.
Update contact details
If your address has changed or you have acquired a new contact number, it is important to update your policy to ensure that it reflects your most up to date information.
“Accurate contact details on your policy are very important because your insurer relies on such information to alert or educate you about vital policy-related matters,” says Bromfield.
Review bank account information
In some cases, life insurance premiums are relatively lower than most debits coming off people’s accounts, hence it’s easy to forget transferring such debit orders when changing bank accounts.
This could be a very costly mistake because your insurance policy could lapse due to consecutive non-payment on premiums.
Bromfield cautions that while insurance providers will take the necessary steps to inform you of any outstanding premiums; it is still the individual’s responsibility to ensure that all payable premiums are up to date.
“If you are changing bank accounts, jot down all your debit orders, big or small, and get your chosen bank to facilitate the transfer or do it yourself.”
Update debit order dates when changing jobs
Changing jobs sometimes leads to changes in salary payment dates, which ultimately impact your debit orders. To minimise the risk of bouncing debit orders or missing payments altogether, update your debit order dates as soon you salary payment dates have changed.
Change of names and beneficiaries
If you got married and changed your surname, or changed names for other reasons – make sure that you promptly update your provider as soon you get the official documentation from the relevant authority.
“Maintaining one’s policy is a critical component of your financial affairs. Poor management of such could have a severe financial impact and in these tough economic times, every cent counts, and people can hardly afford to make such mistakes. Policy maintenance is relatively quick and simple, it’s best to do it without delay,” says Bromfield.