5 Reasons to Review Your Life Insurance Policy Today
In this blog, we tackle five reasons to review your life insurance policy today. We offer five points to consider and if you answer yes, then it’s crucial to schedule a review of your life insurance coverage with your insurance agent.
The Power of a Policy Review:
A few years ago, you did the responsible and proactive thing by buying a life insurance policy. You feel great about that accomplishment. Buying life insurance is meant to reassure you that expenses will be covered for your family and give you peace of mind. And like most people, you put your policy in a safe place and haven’t thought about it in years.
But ask yourself: has any part of your life changed since you bought your policy? I’m talking about life changes such as getting married, buying a new home, having a new baby, an empty nest, and divorce.
If so, then your policy might not reflect your current situation. You could be underinsured or giving your benefits to a person you no longer speak to today!
The following five points are reasons to review your policy today.
Do you have enough coverage for your current needs?
If you have a life change since the time you bought your policy, chances are, you could be underinsured. A new home, getting married, a new baby are exciting life events that affect your insurance needs.
For example, if you have a 500,000 home, a new wife, and a new baby on the way, and your old policy was only 100,000, this will not be enough to support your new family should something happen to you.
How long is the length of coverage?
Some clients start with a term policy due to their limited budget. Because of this, two things need to be considered, when is the term going to end? And what options are available for you?
If your term is coming to an end, you will be able to prepare a plan to continue coverage by either converting it to a permanent plan or looking at a new plan altogether. The best option will depend on many factors, and a good agent should be able to guide you.
Have you updated your beneficiary(s)?
Reviewing your beneficiary now, allows you to add adult children as a beneficiary to your policy if they were still a minor when you originally bought your policy.
However, every so often, I do run into those with minors listed as beneficiaries, which I do not recommend. Unfortunately, their agent failed to advise them wisely on better alternatives. Most children are not fit to handle money, let alone a large sum. The state probate will have to decide who gets to manage the funds for the minor, and there could be disputes among family members. Potentially, this takes the control away from the person you would want to handle the funds and is totally avoidable.
You can also remove those who no longer need to be your beneficiary, such as your deceased or ex-spouse. You can change or update your beneficiary at any time. Doing a review gives you a chance to get it done.
A contingent beneficiary is also something you may want to add or change. A contingent beneficiary will receive the benefits in case the primary beneficiary is no longer around at the passing of the insured person.
Is the cash value of your policy growing?
If you have a cash value or permanent policy, reviewing the growth of the cash value is another smart thing to do. It gives you a chance to ask questions to your agent, plan for any significant future expenses, or change interest crediting allocations on an IUL based on current market conditions. (An IUL is an index universal life plan that uses different indexes as a basis for interest credited to your cash value.)
Is your policy in danger of lapsing?
Regularly reviewing your policy can keep you on track and also prevent the policy from lapsing, which is insurance lingo for terminating due to exhaustion of cash values. I recently reviewed a client’s policy only to find out that the policy will lapse in a few years. By reviewing her policy and identifying the situation, I was able to help her find a solution. If we had not reviewed her policy, my client would have been surprised not to have insurance in a few years.
Schedule your policy review today
If you haven’t considered your current life insurance lately, or know someone who may have put it off, I am offering complimentary policy reviews. Make an appointment now, and have peace of mind for many years to come. Click here to schedule it today.
Do you have any nonperforming assets? Did you know your money sitting in a bank CD could be working harder for you in an annuity? To find out, if an annuity is right for you, schedule a meeting with me.
August 2020 News and Update
These last few months have flown by fast. I’ve been busy educating people about their life insurance needs. It’s never too early to discuss options, but sometimes in my field, sadly it can be too late. If you’re in good health or under 40, now is the time to talk to me. You will get the best rates and your policy (will potentially) have the chance to grow. And if you’ve been proactive and already have a policy, read on to find out about the power of a policy review. I promise you, it could change your life.
My family and I embraced summer break from school. It’s been great not to have to deal with school and distance learning for a change and to do fun things with the kids. Because I didn’t feel safe taking my kids to a public pool, I got a pool for our backyard. My husband and I also celebrated our 13th year anniversary.
I’ve also been invited to guest in the following events:
Living Benefits 101:
Learn all about living benefits, how they can protect you and your family, how to spot the good ones, and how to get them for free! Sponsored by Linda Sims’ Glowing, Healthy, Wealthy, and Wise Facebook Group https://youtu.be/GmQltl3O_no
Business Continuation Concepts:
Find out what businesses, sole proprietors, corporations, and partnerships need to know to avoid costly mistakes later on, when emotions are high and more is at stake. Sponsored by Jason Delumpa’s Monthly Sales Impact https://youtu.be/xXgwtvFkZY8
Podcast with Christoph Nauer, Better Life, Better Business:
Creating a Pandemic Proof Business and Life https://bit.ly/3094876
Life Insurance Awareness Month (LIAM)
If you know anyone who does not have life insurance, please let them know I can help!
Life Insurance Awareness Month is a campaign that Lifehappens.org launches annually to increase the American public’s awareness of the importance of life insurance. According to them, 86% haven’t bought life insurance because it’s too expensive yet overestimated its true cost by 2x. It would be a shame to not get coverage because of misinformation.
Let’s help people we know and care about with the right information about life insurance. Share this post!
Sheilla Vidal is a Retirement Income Certified Professional RICP® and life insurance broker. Sheilla is also a physical therapist, wife, mother of two, and one of the caregivers for her 85-year-old father. She is an avid learner. She writes, speaks, and recognizes that her work in helping clients live with dignity is her God-given mission.
