The reasons to review your life insurance policy are endless. Whether you want more coverage, want to add a beneficiary, or simply want to make sure you’re getting the most out of your policy, review it is always a good idea.
After all, not looking after your future can leave it in an uncertain place. So get ready to review that policy and explore these 5 reasons why it’s important to do so: saving money, ensuring peace of mind knowing the coverage makes sense for you and your loved ones, maximizing your benefits, having enough coverage for nursing home care and others expenses associated with death and end of life care needs and making sure loved ones are taken care of no matter what. Trust us – taking time now will pay off later on down the line.
Overview of Life Insurance and its Benefits
Life insurance is an important part of financial planning. It provides peace of mind and can help provide for your loved ones even after you’ve gone. Life insurance policies typically fall into two categories: term life and whole life.
Term life insurance is generally inexpensive and covers a predetermined amount of time (typically 5-30 years). Whole life insurance offers more coverage and has cash value, which grows over time. Both kinds of policies have their benefits, so it’s important to review the options and decide on the best policy for you and your family.
Regardless of the type of policy you get, there are some benefits that come with all life insurance policies: death benefit payouts to beneficiaries, tax deductions, and coverage for long-term care needs.
So if you haven’t already done so, it’s important to review your life insurance policy and make sure it makes sense for you and your loved ones. Doing so can help provide peace of mind now and in the future.
Reasons to Periodically Review Your Life Insurance Policy
Have you ever wondered why it’s so important to periodically review your life insurance policy? Whether you procrastinated or just plain forgot, it’s now time to give your policy the regular checkup it needs. After all, the reasons for doing so are plentiful!
A change in health or employment status can greatly increase your need for coverage and income, whilst major life events such as retirement mean it’s time to fine-tune that policy and ensure you’re covered for the years ahead. And then there’s marriage, divorce, and remarriage – which could mean that a whole new set of responsibilities follows.
Not least when it comes to insuring those little ones that come along – either as part of getting hitched or simply through adoption. So don’t cower away in terror! Reviewing your life insurance policy is far easier than doctor visits – and probably even more beneficial too!
Changes in Health or Occupation Status
Changes in health or employment status can lead to an increased need for life insurance coverage, so it is important to review your policy and make sure that you have enough coverage to meet your needs. Review your life insurance to make sure everything is covered.
Increase or Decrease in Income
If there has been an increase or decrease in income, it may be necessary to adjust the amount of life insurance coverage you have. Reviewing your policy will help you determine if a change is necessary.
Marriage, Divorce, and Remarriage
Marriage, divorce, and remarriage can require changes in the beneficiaries listed on your policy, as well as any other relevant information about who should receive benefits upon death. It is important to review this information after a major life event such as this to ensure that all the details are up-to-date.
Birth or Adoption of a Child
When a child is born or adopted, it is important to review your life insurance policy and make sure that the child is listed as a beneficiary in the event of death. This will ensure that their needs are taken care of.
Major Life Events (Retirement, Moving)
Major life events such as retirement or moving may require changes to your life insurance policy, depending on your financial situation and your coverage needs. It is important to review your life insurance policy before such an event to make sure you have enough coverage for any potential changes in income or expenses.
Conclusion
It is important to periodically review your life insurance policy to ensure that it meets your changing needs. Changes in health or employment status, as well as major life events such as marriage, divorce, remarriage, or retirement, may require changes to the amount of coverage you have or the beneficiaries listed on your policy.
It is also necessary to review your policy when a child is born or adopted in order to properly provide for their future. By regularly reviewing your life insurance policy and discussing any changes with your agent or broker, you can make sure that you and your loved ones are taken care of now and into the future.
To ensure that you have the best coverage to fit your life circumstances, it is important to discuss any changes with your agent or broker. By remaining proactive and regularly reviewing your policy, you can make sure that you are adequately covered and provide peace of mind for yourself and your loved ones.
Additionally, if there are any discrepancies in what is written on the policy or discrepancies between what was promised verbally by an insurer and what is written down in the policy, it is important to address these issues as soon as possible. Doing so can help avoid potential problems down the line. With a periodic review of your life insurance policy, you can rest assured that you are fully covered and prepared for the years ahead.
Let us Help
At American Assurance USA, we know that life insurance is an important part of protecting your family and providing financial security. That’s why we make it easy for you to review and update your policy to ensure you have the coverage you need. Our experienced agents are here to help you review your life insurance policy and guide you through any changes and answer any questions you have. Contact us today to get started on reviewing your life insurance policy!
Resources
Meyer, T.J., & Cook, M. (n.d.). 4 Life Events That Require Changes To Your Life Insurance Policy | ClearPath Solutions Inc.. Retrieved from https://clearpathsolutionsinc.org/4-life-events-that-require-changes-to-your-life-.html
National Association of Insurance Commissioners (NAIC). (2017). Update Your Life Insurance Policy When Major Life Events Occur. Retrieved from https://www.naic.org/documents/consumer_alert_update_life_insurance_policy.pdf
