While life insurance is undoubtedly essential, you’ve got to make sure you’re getting the most out of your policy. Understanding how life insurance in Connecticut works and what your policy includes makes you a smart policyholder and can benefit you financially as well.
One of the first things you should know about life insurance policies is they have different types of beneficiaries, which include multiple beneficiaries, contingent beneficiary, revocable beneficiary and minor as a beneficiary. Make sure your policy has the right one(s).
Cash Surrender Value
Depending on the type of policy you have, you might have a built-in cash value to take advantage of. You can surrender your policy to gain access to the cash your policy has accrued as long as you’ve got enough to actually cash out. It’s best to think long and hard before choosing to terminate your policy for its cash value.
Should you ever fall on hard financial times while you have life insurance in Connecticut, you can take out a loan. One of the best things about this particular option is the interest you pay is rather low. You can either pay your loan back in a lump sum or in installments.
Know what’s in your policy and how it works. Talk with your agent to learn more.