"A good, sympathetic review is always a wonderful surprise"
Joyce Carol Oates
The benefits of having an insurance review
A review helps determine if existing coverage is adequate or if a new version may be superior in performance, cost effectiveness, and compatibility. A review of your insurance may result in your desire to exchange your current coverage for different coverage.
Is your coverage competitively priced? - Insurance premiums are being driven down due to several factors:
People are living longer.
Insurance companies have reduced expenses.
There is intense competition among providers.
A review determines whether your coverage is cost effective or can be obtained from a stronger provider for less money.
Is the amount of insurance coverage aligned with your needs? - As your net worth increases, it is not unusual for there to be a need to increase your coverage. The purchase of additional insurance to meet your family’s needs may be warranted. In contrast, occasionally your needs may change in a way that will allow you to decrease coverage.
In both cases, it is important to have your coverage in line with your current needs. If your current coverage exceeds your current need, you may be able to adjust benefits; alternatively you may consider naming a charity as beneficiary or surrender unneeded policies for cash. If coverage is inadequate, you may be able to purchase additional life insurance to meet your family’s needs. A review determines the appropriate amount of life insurance you should maintain.
Your needs change
Your needs have changed - Is the original reason you purchased your policies still applicable? Often, the need for life insurance changes:
Your children are grown and you no longer need to support them financially.
You may have sold your business and no longer need your key person or buy-sell policies.
You may have shifted your goals toward charitable giving.
Fit for purpose
A review helps you determine why you may or may not need insurance today and will allow you to adjust your insurance portfolio accordingly.
Your health or lifestyle has changed - Changes in your health or lifestyle can have a profound effect on policy costs or on the type of coverage needed.
If you have stopped smoking, your premiums may be reduced substantially.
If you no longer engage in activities such as piloting private aircraft, scuba diving, or racing, your rates may be lowered.
If your health has declined, you may wish to convert temporary term insurance policies to permanent policies.
A review helps you make sure that your lifestyle and health are reflected in your policy.
Is your insurance co-ordinated with your personal plans? - Lack of co-ordination between insurance and an estate and/or business plan is common.
Have you developed or modified an estate or business plan but neglected to integrate your insurance policies?
Proper ownership of an insurance policy may insulate death benefits from estate taxes.
A review helps identify gaps in your planning and will offer you ideas to consider which will address the gaps. A review will allow you to consider whether beneficiary changes are warranted.
There's Benefits in Seeking My Advice
Getting advice on an insurance review ensures that you’re getting the best Insurance policy for your circumstances. Contact me for invaluable advice.