The Life Insurance Audit

Is your life insurance aging along with you? What do we mean? Well, you probably purchased your life insurance when you bought your first house or had you first child. More than likely it was designed to pay off debt so your survivors would be able to get along for a period of time. 

But circumstances change just like people change. Maybe you’ve paid off your house or you have traded up in property over the years and have a much higher mortgage commitment. Or perhaps you’ve been very fortunate and you’ve amassed more assets than you’ll ever need to use during your retirement. Did you think to change beneficiaries on your policies if you were divorced or remarried? Have you even considered life insurance and estate planning?

Just as your life has changed, life insurance products have changed due to the economic conditions. These economic conditions include 40 year low in interest rates, significant drops in the markets and increased mortality costs in older life insurance policies. The changing economic climate may have caused your insurance policy to be in danger and you may not be aware of it.

A review of your insurance coverage at least every 3 years is essential to ensure your insurance policy is performing to meet your expectations. A detailed assessment of your life insurance portfolio will uncover whether or not your life insurance will do what you want it to do to meet your goals and priorities.

Ask yourself the following questions:

  • Have you reviewed your life insurance policy within the last 3 years?
  • Are your beneficiary designations current?
  • Do you have at least two back-up beneficiaries?
  • Do I have a systematic review process to ensure my life insurance portfolio is meeting my expectations?
  • Do I have the best life insurance solutions in place to accomplish my goals and priorities?
  • Do I understand the role of life insurance in estate planning to accomplish my desired outcomes?
  • Do I know the purpose of the life insurance policy I currently have?
  • Am I getting the best coverage possible for the premiums I am paying?
  • Do I know if I need to either increase or decrease my insurance coverage?

An independent review of your insurance portfolio may be in order if you answered “no” or “I don’t know” to any of the above questions.

 

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