Is your Coverage Current?
There are a number of things that can occur that can cause a need to make a change in your coverage:
- Did you get married?
- Did you have a child?
- Did you adopt a child?
- Did you get divorced?
- Did a spouse die?
- Did your debt level change? For example, did you purchase a house on a mortgage? Did you pay one off?
- Have interest rates changed since you last shopped for insurance?
- Have you retired? Does your family rely more on savings than on your income from work? It may be time to consider a tax-free exchange for an annuity designed to generate income and preserve savings.
- Has your income changed?
- Are you now a partner in a company?
- Do you have a key employee?
- Did you inherit a substantial amount money or property?
- Will your parents rely on you for financial assistance or support?
- Have you lost weight?
- Have you quit smoking?
Do I have a sound life insurance strategy in place?
Any of these common life changes can precipitate the need for a significant change in life insurance coverage. But even if you haven't undergone one of these life-changing events, it's still a good idea to have a good heart to heart with your insurance agent on an annual basis. Here are some reasons to start with:
Options may expire. If you've had a policy for a while, you may have some options to purchase additional coverage expire soon. It may be time to sit down and review your options and see if you want or need the additional coverage. This is especially true if your health has declined, or you've gained weight. You may not have another chance to purchase life insurance at your original rating.
You may want to convert term life insurance to a permanent insurance policy. Term insurance provides the most face amount per dollar of monthly premium now - but it is very expensive over the course of a lifetime. Your agent can review your options and help you select the best strategy for you.
There may be new solutions and products available that may suit your needs that weren't available a year ago. Life insurance companies are constantly evolving, looking to uncover customers' needs and provide solutions to enhance their financial security. For example, your company may now offer a useful new rider or other benefit.
Regular reviews are also important to prevent unwanted lapsing of insurance policies. These are particularly important if you own a universal life policy and you have been paying premium out of cash value. Even if your existing insurance policy is with another company, you can still review it with us. If you qualify, an exchange may be warranted.
We'd like to invite you to schedule a no-obligation personal life insurance needs review. The purpose is to look at your current coverage and how well it dovetails with your personal financial needs, goals and risks. From there, we will determine if your current life insurance strategy still meets your needs, or if a change is warranted.
If you have a permanent policy, with cash value - whether it's a whole life, universal life, or equity-indexed universal life policy, we can also explore some strategies that may be available to you to make use of the substantial living benefits of these policies.