Life insurance has traditionally been viewed as a commodity that is often ignored once coverage is obtained. Consequently, it is a product that we often buy, fund it as we believe we should or as we were told, and then do little thereafter to maintain. Life insurance, however, is an asset.
It is also a complex financial instrument that may be affected by changes within the industry, the marketplace, the economy and, most importantly, your own personal circumstances.
Often there are legitimate planning issues such as changes in financial or personal situations that require making changes in life insurance coverage. In addition, improvements in available life insurance products offer the real possibility to improve coverage without any additional expenses.
Here are a few reasons why everyone who has an existing life insurance policy should get a policy review to ensure their current policy (s) are continuing to meet their objectives:
- Advancing age and deteriorating health can prevent the insured from taking advantage of more cost-effective products.
- Life insurance, if not owned properly, can increase estate taxes in larger estates.
- Many life contracts do not meet current needs due to life or career changes.
- Improved product offerings may increase coverage. Many new products have features that were not available in the past.
- Beneficiary designations may be out of date.
- Older life insurance contracts may use higher mortality rates than current policies.
- More lenient underwriting provides the opportunity for lower insurance costs.
- Coverage may not remain in force to maturity, based on reasonable projections.
- Outstanding policy loans may cause a policy to lapse.
- Existing term policies may be approaching a premium increase or may be beyond their conversion point.
In providing a life insurance policy review, our goal is to help our clients better understand their current situation and provide them with information that can help them decide what course of action makes the most sense for them at this time.