This portion of your policy can go by a few different names, such as policy specifications or schedule of benefits. In this section, you’ll see the executive summary of your policy and all the important details.
Some of the information found on the declarations page includes:
The Insured or Policy Owner
This is usually the same person - you - but, in the event that the policy owner is purchasing a policy for someone else, these names will be different. In cases where parents purchase a life insurance policy for their minor child, the names in this section are different.
The policy owner is the one paying the premiums, while the insured is the one whose death would trigger the payout of the death benefits.
Here you will find information on the type of policy you’ve purchased, such as a term life insurance policy or a whole life insurance policy.
This is the number the carrier allocates to your individual policy. This number is good to take note of, as it allows you to identify or confirm your policy when needed.
Policy Issue Date
This is the day your life insurance application was approved and your carrier offered you coverage.
The policy issue date, however, does not denote the day you actually receive life insurance coverage; it’s just the day you were offered a life insurance policy.
This date is the day your life insurance policy goes in force and you have life insurance coverage.
The effective date is the most important date on your policy, and if there isn’t an effective date listed you don’t actually have life insurance coverage.
If you die before your policy’s listed effective date, your beneficiaries will not receive the insurance payout, even if you die after your policy’s issue date and you were approved for coverage.
Premium Class or Rate Class
Your rate or premium class is based on the health classification you were given during the underwriting process, and determines how much you pay for your policy premiums. This number is determined through an evaluation of your medical history, family history, lifestyle, and background.
There are four premium classifications:
- Preferred Plus
- Standard Plus
If you received a classification with high premiums due to some factor, such as smoking, you can apply for reconsideration after you no longer meet the condition and your policy has been in force for at least a year or two.
If you opted to purchase a term life insurance policy, the length of your coverage will be listed in your policy.
Life Insurance Riders
Most life insurance policies allow you to purchase additional coverage, such as dependent child coverage or coverage that will pay off your mortgage, in addition to your base life insurance policy. If you elected to purchase this type of additional coverage, it will be listed in your policy.