Policy Basics

Policy Anniversary

Fundamental terms that define how a life insurance policy works.

Definition

What Is Policy Anniversary?

A policy anniversary is the annual date marking one full year since a life insurance policy was issued. Many significant policy events occur on or around anniversaries: guaranteed insurability rider option dates, policy dividend declarations, annual statement mailings, and in some policies, the option to increase coverage or make structural changes. For universal life policies, the policy anniversary is when annual summaries are typically mailed, showing credits, deductions, loan balances, and projected policy performance. Contestability period milestones and conversion privilege deadlines are often measured in policy years from the anniversary date. Keeping track of your policy anniversary ensures you don't miss time-sensitive elections.

Nevada Context

Nevada carriers are required to provide annual policy statements to policyholders. Nevada consumers should review their anniversary statements carefully to confirm values align with expectations and to identify any required action.

How It Affects You

Mark your policy anniversary on your calendar and review your annual statement. For participating policies, confirm whether dividends were declared. For UL policies, verify the cash value and death benefit remain on track with your illustration.

Real-World Example