Life Change Reviews
An extremely important component of owning a life insurance policy is periodically reviewing the coverage to make sure it is addressing your current needs. All too often, people’s lives change while their life insurance coverage remains the same — periodic reviews will ensure that your coverage is meeting your current goals.
Some common reasons to review your policy would be if you have recently:
- Purchased a new home
- Got married/divorced/remarried
- Welcomed a new child (or more) to your family
- Had a change in employment status or benefits/been promoted
- Started your own business or sold one
- Had a change in health or lifestyle that led to improved health
- Received an inheritance
Other reasons for a policy review include:
- Considering a life insurance policy that also provides Long-Term Care or Chronic Illness coverage
- Considering a potentially lower outlay for your coverage amount
- Considering additional options for saving for retirement
Policy Performance Reviews
Aside from the reasons to review based on life changes, life insurance policy reviews are vitally important as there are a number of factors that can directly impact the fundamental performance of existing policies. Some of these factors and reasons are:
- Policies that were illustrated at rates that are inconsistent with today’s economic environment and may be underperforming expectations.
- Policies that were underfunded to minimize premium outlay and now may require an extension of the premium payment period or an increase in the current premium outlay due to recent declines in interest and dividend crediting rates.
- Recent policy feature developments that guarantee death benefits for a specified premium, regardless of actual investment performance.
- Insurance company ratings that may have declined, threatening the financial ability of the insurance carrier to perform on its contractual obligations.
- Term or graded premium policies that may increase substantially in cost.
- Recent design advances in the medical field, underwriting improvements, technology, and mortality improvements in product pricing which may provide opportunities to enhance benefits or reduce premium outlay.
At Cassady Schiller, we work closely with you and a licensed insurance professional to ensure your life insurance policies consider both current and future needs and will accomplish your desired outcome. If you have any questions about policy performance reviews and overall life insurance needs, please contact us as we welcome the opportunity to discuss your unique situation.