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The only thing that makes dating more fun is life insurance. But if you don't understand the dates that are significant to your policy, your plans may go badly awry. Let's take a minute to learn about the dates in life insurance.
Effective date
An effective date is one that ends with both of you back at your place.
You will probably be surprised to learn what your policy looks like when you're alone with it, but the good news is that even after you've got it to yourself, you're not committed to anything. Sure, by this point, you're financially invested, but that investment only lasts for a single premium payment period. At any time, you can dump your policy. Just stop giving it money, and it will die.
In most circumstances, effective dates end up with everyone far covered than they initially were. With life insurance, though, you should find yourself more covered. Just make sure it's the life insurance policy that's doing the covering.
Another name for an effective date is simply "policy date." This is a clue that you should endeavor to make every date an effective one.
Date of issue
A date of issue is when your policy comes. This should occur on your effective date.
Maturity date
Eventually, you'll notice signs that the honeymoon is over and it's time to go your separate ways. It's just not worth touching that droopy, dried up, old policy anymore.
Depending on the policy that you've been living under, though, you might get something out of the separation:
If yours is an ROP (return of premium) policy, you'll have all your money refunded to you when you split. If yours is a whole life insurance policy, you'll actually be granted a full death benefit, even though you're still alive. If you were with ordinary term life insurance, though, your cash is gone for good.
Only if yours is universal life insurance, do you not have to worry about maturity. Universal life insurance can stay with you forever.
Age basis
The older you get, the more you have to pay for company of the insurance persuasion. After all, no insurance policy wants to be with an enervated, old duffer.
Age basis itself is not a date, but dates are of concern. Your age basis is the age that the insurer considers you to be. It's the age that the insurer uses to calculate your cost of insurance. In level premium plans, your advancing age is of no concern, only your age basis at the start of the plan.
In many cases, your age basis is equal to your age. An insurer will increment your age basis either on your birthday or six months before your birthday (so that your age basis is based upon your nearest birthday, not your last birthday).
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