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Important Things You Should Know About Your Life Insurance Policy

09 Jun 2022
Important things you should know about your Gibraltar BSN insurance

Life insurance is a contract between an insurer and a policy owner. If you are insured, understanding your policy ensures you can enhance your financial protection while also avoid leaving gaps. A lack of understanding may cause unwanted surprises which may have adverse financial consequences.

The thing is...insurance policies can be difficult to understand for policyholders! Don’t fret! We’ve listed down the key things you should understand from your insurance policy to help you on your financial protection journey.

Jackie Chan doesn't know which Gibraltar BSN insurance to choose

Source: memegenerator.net

Type of plan

Whether it’s life insurance, medical insurance, or critical illness coverage, it’s important to understand the purpose of your insurance. Understanding the type of plan gives you a clearer understanding of your risks and why you are paying your insurance premiums.

Type of plan Goal
Life Insurance

A lump sum payment is provided to the beneficiary as financial support in the event of death or disability of the insured.

Medical Insurance

To cover your medical expenses.

Critical Illness Coverage

Provides you a lump sum payment upon a critical illness diagnosis as financial support for any loss-of-income due to inability to work or to pay any cost overrun if medical insurance fall short. Giving you peace of mind to focus on your recovery and treatment.

Endowment Plan

A life insurance policy which helps the policyholder save over a period of time. The policyholder can get a lump sum amount on the policy maturity if they survive the policy term.


Spongebob Squarepants encourage people to get covered under Gibraltar BSN

Source: Giphy

Coverage

Know what you’re covered for and your coverage limit. Understand the particular events or items in which you will receive coverage. For example, does your life insurance cover accidental death? Does your medical insurance have a limit on how much you can claim? Look out for exclusions which are the instances for which the insurance provider does not provide coverage.

To calculate how much coverage you need, use our financial calculator.

Man is happy to be a nominee for a Gibraltar BSN policy

Source: Giphy

Beneficiaries

Beneficiaries are to whom the benefit would be payable to. Nominating a beneficiary will avoid delay of payable benefits which can take years. For life insurance, the beneficiary or beneficiaries should be informed and have a copy so they are aware and can make a claim. 

On how to nominate a beneficiary, check out our article here.

Reckless man is not insured by Gibraltar BSN insurance

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Required declarations

They are part of the underwriting requirements the insured accepts to maintain coverage. If a condition is breached, the policy can become void or the claim may be refused. For example, a claim can be refused if the insured did not declare that they smoke, have a high-risk occupation or that they have a family medical history.

Baby reading about how her parents are protected with Gibraltar BSN insurance

Source: Tenor

Other Key Terms
Term Definition
Sum assured

The amount payable on the occurrence of an insured event under the insurance policy.

Premium

The amount paid for a contract of insurance.

Frequency of payment

For example, yearly, semi-annually, or monthly. The lower your frequency, the less you pay.

Maturity date

The date when the coverage term expires. Some policies provide a maturity benefit which is an amount the insurance providers pay you after the maturity of the policy.

Riders

Optional provisions that adjust the basic insurance policy. Adds benefits or amends the terms of a basic insurance policy. It’s usually made available in an investment-linked insurance plan.


The above will help give a good overview of your policy. It will also help you review your policy and adjust it if needed according to your life circumstances. A good insurance provider will help you understand your insurance policy. If you have a Gibraltar BSN insurance policy and have any queries regarding it, please do not hesitate to contact us through any of our channels here.

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