Is your life insurance policy performing as it should? A life insurance policy review by our professional advisors can help you determine if your current policies are aligned with your goals. During the purchase of your life insurance policy, you probably made certain assumptions about your future needs, interest rates, planned premiums and other issues. But life constantly changes. The original reason for your purchase may still exist; however your needs may have changed, requiring more or less coverage.
Spring recommends that every few years you have an expert review your policy to ensure your coverage fits your current needs. Our advisors have the ability to perform a comprehensive review, discuss your existing policy in relation to you current goals and determine if your life insurance is on track and if not, we’ll identify the steps and items that need to happen to bring the policy up-to-date.
Having Spring review your life insurance policy may increase your death benefit, lower premiums, extend coverage duration, increase projected cash accumulation and ensures the financial strength of the carrier.
Please contact us for more information about our defined life insurance policy review services.
Why Review a Life Insurance Policy?
A life insurance policy is an asset that must be managed on a consistent basis. We have outlined the top 6 reasons of why a life insurance policy should be reviewed.
(1) Have Your Goals and Objectives Changed?
As your needs change over time, is the life insurance policy(ies) still applicable given your current financial and future goals? Generally, the need for life insurance changes.
- Your business has grown significantly and there may be an additional need for key person life insurance or to fund a buy sell arrangement.
- You may have sold your business and no longer have the need for buy sell life insurance policies.
- You may need life insurance to offset your future estate taxes as a result of an untimely death.
(2) Has Your Health or Lifestyle Changed?
- In the event you have refrained from smoking, your premiums may be reduced.
- If your health has declined, you may consider converting a term life insurance policy to a permanent product which does not require additional underwriting.
(3) Is Your Coverage Competitively Priced?
- Insurance companies have reduced policy expenses.
- Individuals are living longer which has impacted life insurance companies to price products more competitively.
(4) Is the Amount of Coverage Aligned with Your Goals and Objectives?
- As your net worth increases, it is not unusual to increase coverage to meet your family’s needs. In contrast, your needs may change which causing a reduction in coverage.
(5) Are the beneficiary designations correct?
- Typically, beneficiaries are not updated once a policy is purchased. Given your current goals, would you change your existing beneficiaries?
- What tax implications may arise as a result of changing your beneficiary designations?
(6) Is Your Life Insurance Policy Performing as Originally Designed?
- Given the changes in the interest rates, has the performance of your policy been impacted?
- Has your policy lapsed or is a higher premium now required?
A life insurance policy review reflects the current state of your policy and determines whether your coverage is cost effective. Changes to an existing policy should be considered given your current goals and objectives. If your policy is not reviewed nor managed on a consistent basis, it could result in a lapsed policy or may cause an unforeseen tax consequence that would have been avoided.