Life insurance. At times, it can feel like one of those collectibles stashed in your attic.
You believe you have it. You purchased it (but you might not remember when, why, or from who.) But its exact whereabouts – and its precise value – are a bit of a mystery.
Well unlike those Precious Moment figurines or your collection of Beanie Babies, the mystery surrounding your life insurance can be solved with one simple exercise… a policy review.
A policy review goes beyond the numbers and the paperwork. It determines if the life insurance you have is still suitable, cost-effective, and aligned with your needs and goals.
Who could benefit from a policy review? Anyone…
With a policy that is 5 or more years old.
Recently married or divorced.
Purchasing a new home/vacation property.
Expanding their family (new baby/adoption).
With increased debt.
Experiencing a significant business change.
Funding a college education.
Planning for retirement.
Designated as a trustee of ILITs.
Why should you undergo a policy review? It will…
Assess coverage adequacy.
Identify cost-saving opportunities.
Evaluate policy performance.
Optimize policy features.
Address changes in health or lifestyle.
Ensure alignment with planning objectives.
Ensure that owners, payers, and beneficiaries are correct and appropriate.
What could a policy review potentially uncover?
The projected interest rate at the time of policy purchase was higher than the actual rate credited.
If a policy was issued when you were a smoker, but you have since quit for over 10 years, the premiums may still reflect the higher rates associated with smoker classification.
A policy may be underperforming if loans or withdrawals have been made or if premium payments have been missed.
Recent empty nesters may find coverage needs have changed.
As goals evolve, there may be a greater emphasis on cash accumulation within the policy.
There’s no better time than Life Insurance Awareness Month for us to review your policies and discover opportunities to capture greater value from your coverage. Simply click reply to this email to take the next steps.
