When talking to prospects about life insurance, one phrase sticks out the most:
“I already have life insurance.”
Without fail, I always compliment the individual on having the foresight to protect their family. Getting life insurance is not an easy thing to do, and it’s not because it’s complicated or difficult to obtain. It’s because you’re considering your own death, and buying a policy you likely won’t benefit from in this lifetime. It’s a hard conversation to undertake, so anyone having a policy in place is impressive.
That being said, you should never assume your life policy will hold supreme value for the rest of your life. That’s because rates change, your life may change, and therefore, your policy might need changing too.
A life insurance policy review only takes a few minutes and can help you decide if your policy still fits all your needs, and those of your family.
Here are several important reasons to undergo a life policy review at your earliest convenience.
Rates May Change
A prime benefit of most life policies is that premiums do not fluctuate. Buy a term policy and you can expect to pay the same amount for that term of 10, 20, or 30 years. A whole life policy tends to have the same premium that lasts the rest of your life.
It’s before you buy a policy that rates can change drastically. Life insurance companies are corporate entities like any other. They care about profit and bottom lines, same as AT&T or Amazon. Like these companies, you may find products priced less to entice new customers. Life insurance companies work the same way.
By undergoing the occasional policy review, you can determine if you’re getting the most value for your money, or the most bang for your buck.
Your Life May Change
Life insurance should be robust enough to satisfy all your goals. For many, this means having a big enough policy to pay for final expenses like burial or cremation. But there are many reasons why undergoing a policy review makes sense after meeting certain life milestones.
For example, if you bought a life policy when you first got married, you might want to review your policy after having kids. That way, you can ensure you have enough to cover the needs of your expanding family.
The same goes for new homeowners. A policy that doesn’t cover the mortgage could leave your family high and dry, and homeless, if something were to happen to you, assuming you’re the prime breadwinner.
It’s also important here to mention beneficiaries. The person you want to receive the death benefit may change over time. Make sure the primary and contingent beneficiaries are always accurate as time goes on. A policy review is prime time to get that done.
Even beyond beneficiaries, by reviewing your policy following certain life milestones, you can ensure you’re covering your family the best you can, for supreme peace of mind.
New Carriers and Products
One important benefit of working with a life insurance broker like Little Family Security is that you get access to a multitude of life insurance companies and their expanding menu of products. As a broker, we can do the shopping for you, all in a matter of minutes.
And you never know what premiums you’ll uncover. In an effort to stay competitive, many carriers lower their rates. They might also introduce products that come with added perks beyond the prerequisite death benefit.
Some life products, for example, come with long term care riders built in. Or living benefits, whereby you can draw on the death benefit after suffering a heart attack or stroke, or upon the diagnosis of a terminal disease. These benefits vary by carrier and policy, and eligibility depends on the specific terms of the coverage.
If you bought life insurance when you were younger, maybe long term care wasn’t on your radar. Only as you age do you see the importance of having a provision for long term care attached to your life policy. This is yet another reason why periodically reviewing your policy can ensure your life insurance meets your needs.
Ask about the various riders and policy perks and always make sure your policy fortifies your life while at the same time protecting your family after you pass.
How to Undergo a Life Policy Review
If you already have life insurance, you’ve covered the most important step. And you’ve already gone through the most rigorous part of the process. You gave the agent all the information needed to secure a policy and protect your family.
A review works the same way, which means you’re already accustomed to how to go about it. You never know, you could end up saving hundreds of dollars a year. Or getting a policy that comes with a multitude of riders to plan for the unexpected.
Of course, the best-case scenario is knowing your existing coverage is still the best fit. But you never know. By going through a policy review, you can determine if a replacement makes sense. You'll want to understand any differences in premiums, benefits, waiting periods, and other policy provisions before making a decision.
Just make sure you get the replacement locked in first before you cancel any existing coverage to prevent a lapse. Ask your agent for details.
Want to make sure your policy meets your needs while adhering to your budget and goals? Call Little Family Security at (682)802-2276 or schedule at the top of the page, and one of our agents will walk you through the process in just a few minutes.
