Communication is key when it comes to insurance policies. A New York man learned that recently when his insurer threatened to cancel his life insurance policy over missed payments.
The New York State Insurance Department tells the story of a resident who moved and despite contacting his life insurance company to ensure proper billing, an error occurred and the insurer tried to cancel the policy.
The NYSID was able to help the man get his policy reinstated, but not everyone will be as lucky, notes Insurance Superintendent James Wrynn.
"Consumers always need to be careful to let their insurance company know when their address changes," says Wrynn. "Keeping contact information up-to-date, as well as trying to communicate in writing can go a long way in helping avoid problems."
Along with informing insurers of address and method of payment changes, it's important for consumers to ensure they know exactly what their policy covers.
In many cases, people think they have more coverage than they do. Unfortunately, most policyholders don't learn of everything their policy entails until it's too late.