Life Insurance Policy Worksheet Instructions

Index ID is the identifier you assigned to the policy in the earlier exercise.

Annual Premium is the total amount you pay for the policy in a year. If you make monthly payments, multiply your monthly premium by 12; if quarterly, multiply by 4. Do not include items such as interest or principal payments on policy loans.

Waiver of Premium refers to a policy provision that will continue the insurance in force without the payment of premium during any qualified period of disability (as defined by the policy).

Insurer’s Financial Strength Rating must be obtained by either telephone or the Internet. You may use any of the raters listed there, but make sure that you obtain the rating for the actual company that underwrites your policy.

Contact information for the insurance company should be located on the policy. If not, call your agent and obtain it for your own records. If a group policy, note which group sponsored the plan on the worksheet.

Contact information for your agent should be stored with your policy. If not, write it down and store it with your policy. If you have no agent, leave this blank. Policy Number is the number the insurance company uses to identify your specific policy. This may sometimes be referred to as the “certificate number” or some other name.

Name of Insured is the person who must die for the insurance policy to pay off. It is not the person who will receive the money (this person is called the “beneficiary”). Birthdate of Insured is the birthdate of the insured listed above. This is important because most term life insurance policies reduce or cease coverage at some point, usually age 65.

Name of Owner is the person who has the right to determine, for example, who the beneficiary will be. This is usually the person who is responsible for paying the premium.

Name of Beneficiary is the person who will receive the proceeds when the policy pays off. If more than one, note all beneficiaries and portions.

Type of Policy is determined by what the annual premium pays for. For example, if there is no investment component to the policy, it is pure term; if the insurance pays a sum or income to you, it is endowment insurance; if the policy develops cash values over time and does not automatically discontinue at a particular age, it is whole life. The type of policy is usually identified at the beginning of the policy.

Date Issued is the date on which the insurance coverage first became effective. If term, quote from the policy the provision that states how and when the insurance coverage will decrease, if any. Additionally, calculate the amount of insurance that will be available to the insured at ages: 50, 55, 60, 65, 70, 75, and note that on the worksheet.

If term, quote from the policy the provision that states when the insurance coverage will cease. If based on the insured’s age, calculate that on the worksheet. Face Amount refers to the basic amount that the policy promised to pay upon death when you purchased it.

Additional Death Benefits refer to any additions to the death benefits that the policy provides by its terms, such as paid-up additions. If such benefits are available, note them on the worksheet (including any formulas necessary to determine such benefits).

Loans Outstanding as of Today refers to loans against an endowment or whole life policy cash value that you have taken (not available for term life policies). These loans reduce the amount that will be paid to the beneficiary upon death and usually require annual interest payments calculated as provided for in the policy.

Total Cash Value As of Today refers to the amount that you would get from the company if you cashed in your endowment or whole life policy today (usually based on a formula, such as total cash value minus outstanding loans). Term life policies do not accrue cash values.

Living Benefits Provision refers to any part of the policy that expressly allows the beneficiary or insured to obtain at least a portion of the proceeds of the policy before the insured dies, as long as the insured is terminally ill. These benefits are available to assist the insured with expenses at the end of life while they are still alive. If such a provision exists, quote it on the worksheet. Income Provision refers to the sum or income the insurance company will pay you if you live to a certain age.