What is an Anniversary Date?

When you get married, start a relationship, or a get a new job, the first official day is your anniversary date. The same is true for life insurance. The day you signed the policy papers and paid the first premium is your anniversary date. Now, while your wedding anniversary is usually a time of romantic dinners and gift giving, your insurance anniversary date is a tad different. Don't get me wrong, you can give yourself a gift by changing your dividend payment structure or renewing your policy so you are better protected but you don't have to buy your insurer the "right gift" or take them out to a fancy dinner.

Better Protection and Perks

When your anniversary date of your insurance policy comes around it usually means one of two things. You are going to owe an annual premium payment, or you are going to make some kind of change to your policy. It can also mean absolutely nothing if your insurance is paid monthly, or quarterly, and the term is going to last until your 75th birthday. In that case, spend your time focusing on your wedding anniversary instead of your insurance anniversary or guarantee periods. This ensures that you will live until that 75th birthday, but back to the issue at hand. If you, for instance, have a flexible premium policy your anniversary date is the day in which you have to make sure your cash value is at the agreed upon level to keep your policy active. You will get notice well before that time with instructions but you are ultimately responsible for getting the money into the account before your anniversary date.

If you have a whole life cash value type policy and you have the option to change the dividend structure of your policy, the anniversary date is the time you can make those changes. Let's say you have a tough financial year coming up and you would like a little extra cash flow, you could change your dividend payments from going back into the cash value and instead take a cash payment for your use. You can also do the opposite. If you see that your cash value is going to need replenishment you can opt to direct your dividends toward replenishing that pot and save yourself a future premium payment.

Happy Anniversaries

Your anniversary date with your insurance company is a good day. It is the day you can dedicate to ensuring your insurance protection is in order and in line with your expectations. It might be the day the policy ends and you get an offer to renew. It might mean nothing except you are protected as always. Your anniversary date can be about many things. The great news is you don't have to guess what it means. There is no perfect gift that you must buy. There is no reservations to be made at the perfect restaurant. The truth is, your anniversary date is just your chance to make changes, renew your coverage, or make your annual premium payment.

Prior to your anniversary date you will receive a notice from your term life insurance company telling you exactly what you need to know and/or do on your anniversary date. You will have more than one day to do what you need to do. If you have questions call your agent or your insurance company and ask them what your options are. You can also review your written policy for instructions on what your anniversary date entails and what your options are regarding dividends, premiums, or renewals.

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