When’s the last time you pulled out your retirement plan documents or your home loan and mortgage contract, or heck… your life insurance policy contract?
Financial contracts are really complicated.
Especially life insurance policies. OK, not all life insurance policies, but some of them are super-duper complex.
They sometimes contain language like: “we may increase policy charges at our discretion”
Now, not all policies are like this. Some are, some aren’t. It just depends. Some term policies, for example, auto-renew at higher rates once you hit a certain age or once the level premium paying period is over. Other policies simply end and you lose your policy.
Some whole life policies have non-guaranteed charges baked into policy riders that can change from year to year. Some don’t.
Some universal life policies have provisions that allow the insurer to change just about every element of the policy. Some don’t.
And some policies have embedded “shadow accounts” that you can’t see on the policy’s illustration that fundamentally changes how the policy will be managed over time.
If you haven’t had your insurance policy reviewed yet, it may be time. Not having it reviewed can cost you thousands of dollars. Sometimes, millions of dollars in money you’ll never know about unless you have someone comb through the policy with you.