There is no greater feeling than purchasing a life insurance policy. Once you sign on the dotted line, you’ll immediately feel better about the future.
However, there’s something you need to remember: you should revisit your coverage every now and again. As a general rule of thumb, review your life insurance policies at least one time a year.
The problem with a “set it and forget it” approach is that your personal and financial situations can and probably will change as the years go by.
For example, you may be okay for now with a single life insurance policy with a $500,000 death benefit.
However, if something changes in the future, such as bringing additional kids into the world, you’ll want to reconsider if this is enough.
Question To Review Your Policy
- How much money are you currently paying for life insurance coverage?
- Will your policy last forever, or when does it expire?
- Can your life insurance premium vary from one year to the next?
- How many policies do you currently have in place?
- What type of life insurance coverage do you have? (whole, term, universal)
- Does your life insurance policy accumulate a cash value? If so, how much money do you have right now?
- Do you have the option to add additional coverage to your current policy?
- Do you have the option to convert your policy into another type?
- Are you okay with your current beneficiary designation, or do you need to make a change?
- What riders did you pick originally?
These are the types of questions that will help you better understand your current situation, as well as if you need to make any changes in the year to come.
If you like what you see and realize that you have enough coverage, you can leave everything as is. However, if you come to find that a change is necessary, you don’t want to wait too long to consider what’s best.
While all the questions above deserve your attention, here’s the one you should really focus on:
Do you have enough coverage to take care of your family in the event of your death?
It’s hard to think about a world in which you leave your family behind, but it’s the responsible thing to do. If you aren’t confident that your current death benefit(s) is enough for your loved ones to get by after your death, it’s time for an immediate change.
Permanent polices may not be as permanent as you think. One of the best things you can do to make sure your policy is performing correctly and it lasts forever is to get a “Inforce Illustration”.
This inforce illustration will show you how your cash value is expected to grow. In addition it will project how many years the policy will last. Some policies like old Universal Life policies they may not last as long as you think. So it’s very important that you review your coverage and how it’s projecting.
If you need help we would be happy to order an inforce illustration from your current life insurance company with you.
Call us at: (855) 946-5353
Get the Help You Need
As you review your life insurance coverage, you should never feel like you’re alone. There are many places you can turn for help.
For instance, ask your spouse or beneficiary (if applicable) if he or she can assist you with the review process.
Also, call your life insurance company or broker to discuss your current coverage and any changes you could make for the better. You can’t go wrong with professional advice.
Sometimes, all it takes is a different point of view in order to realize that a change could do you good.
With 2018 moving along, don’t wait any longer to review your life insurance coverage. It’s your hope that everything can stay the same, but if you need to adjust your coverage there’s no better time to take action. Once you do so, you’ll feel better about the future.