Importance of Life Insurance Reviews
Most people believe that life insurance is a “set-it-and-forget-it” kind of protection. But this crucial pillar of financial security is not a onetime undertaking. As your circumstances—individual and familial—evolve over the years, so too, do your life insurance needs.
It Might Be Time to Review Your Life Insurance Policy If... You’ve never had a review. Policies are impacted by many factors and could be under-performing without your knowledge. Deadlines loom. Example: the term conversion is expiring. There are ways to extend coverage. Your family is expanding. Many parents buy life insurance when the baby arrives, but we advise couples to do so when they start planning for a child to ensure coverage is in place. Your marital status has changed/is changing. This includes divorce and remarriage. You’re considering walking away from a policy. Brokers can often sell it for more than you’d receive by surrendering it. You enter into a business partnership. Because some arrangements include obligations and partner payouts.
You rely on a policy through work. If you’re considering leaving your job, the coverage may not be portable (you can’t take it with you). You may also be overpaying. You’ve borrowed against a policy. Loans can cause a policy to lapse and can result in a tax liability. They also may not be intentional. Your income or business has grown. Because existing coverage may no longer be sufficient.
Your habits have changed. Quit smoking? Lost a significant amount of weight? It’s been a while since your last speeding ticket? These behavioral shifts can directly affect your existing policies.
Prepping For a Review (This Won’t Take Long) Happily, the review process won’t require the in-depth questioning and medical analysis of the initial acquisition. But any qualified insurance advisor will need to understand your current situation and collect information about any existing policies. For non-term coverage that includes a recent annual statement and an “in-force,” which the broker can obtain with a signed release form. For term coverage, a copy of your policy’s “declaration pages” will suffice.
Our Risk Analysis Process If it is time to review your life insurance policy, we recommend our time-tested, step-by-step review process which results in bespoke life insurance solutions for your particular needs. Our process begins with a review of any existing life insurance programs as well as your passions, financial goals, lifestyle, needs and wants. Next, we will outline your exposure and vulnerabilities, then help you make informed, strategic coverage choices. Finally, leveraging our deep market connections and insurance proficiency, we will negotiate effective policies to cover your assets and potential liabilities.
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Review your existing life and disability policies
Clarify your family’s needs, challenges and objectives
Assess exposures and vulnerabilities
Create a personalized coverage strategy
Negotiate effective policies and rates
Implement and finalize policies
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