I often talk with Clients about their life insurance program. Some people have life insurance for estate planning, others for business continuation and still others for survivorship planning. In all cases you might want to get yourself a life insurance review.
If you’re interested in what my five reasons are…..read on:
Your insurance company could be having a bad run.
A life insurance company is well, a company. That means that some of them will do well for ever and ever. And then, there are some that have hit hard times.
It hasn’t happened in a while but there have been times when life insurance companies have gone out of business. The A company you bought your policy from years ago might have hit hard times. If that’s true with your policy you might want to think about finding something that would suit you better.
Interest rates or dividend scales could have changed.
If you bought your policy over ten years ago, this isn’t a might, it’s an is. You probably bought your policy believing that at some point in the future either dividends or interest received would cover your premium costs.
If that’s true for you, then there’s a chance that you could be in for a rude awakening. You don’t want to wake up one day and find that your life insurance policy is going to lapse and for you to keep it in force, you’ll have to pony up a lot more money for premiums.
There could be a better life insurance option for you.*
The insurance companies might have come out with a newer product that better fits your needs. Insurance companies are constantly developing new ways of funding insurance. Sometimes these new ideas make a lot of sense.
I hope you think it makes sense for you to take a look around and see if that policy you bought years ago is still doing what you want it to do. Looking at what’s new in the industry is something I recommend you do. After all, you take a look at your investments and see if they make sense. You should do the same with your insurance policy.
The cost of insurance has changed.
You might find the cost of insurance you’re paying for has decreased. If you have an old policy, there is a chance that you could reduce the amount that you pay for your life insurance.
This is especially true if you’re in the market of buying term insurance. Fifteen years ago many insurance policies had costs that are higher than they are today. Don’t you think it makes sense to make sure you’re getting a good deal……even if you’re fifteen years older?
You don’t need your insurance anymore
Your life insurance needs have changed. Your personal situation might have changed and the policies that you’ve had in place can be changed to fit your new circumstance better.
If you bought second to die insurance ten years ago to pay your estate taxes, you might find that the new estate tax law relieves you of that burden, meaning you don’t have an estate tax problem. If that’s true for you don’t you want to know whether you should keep that insurance policy you have in force?
I find that too often people buy an insurance policy and then ignore it. I think it’s important that when you buy a policy, you not only pay attention to it, but have it reviewed every five to seven years. Within that time frame, too many things can change. Of course, you can choose not to have a review done….and later regret it.
Why don’t you click here and let me know what you’re going to do to make sure your life insurance policy is serving you in the way you want?
*There may be liquidity issues (potential surrender and tax charges) when replacing a policy, increased sales charges, fees, and tax implications. The new policy will likely have its own new surrender charge schedule, which may extend beyond that of the original policy. You may pay higher premiums if, for example, your health has declined since the purchase of the current policy. The new policy typically will have a new contestability period - a two-year period from the issuance of the new policy during which the insurance company could challenge a death claim based upon a misstatement on the application. Any policy loans could affect the performance and surrender of the existing policy.