Buying life insurance is NOT a one-time event. Life changes, and along with those changes comes the importance of re-evaluating and updating your existing life insurance portfolio. It is important to review existing life insurance policies on a regular basis, to ensure that your coverage is still meeting critical circumstances and objectives.
The Policy Review process involves more than a determination to see if the amount of death benefit is appropriate. While the policy(s) may provide an adequate amount of coverage, there are many other factors to consider. For example, the premiums for existing contracts may no longer be as attractive as they were when they were issued. Other factors to consider include changes to the need for coverage, such as: marriage, divorce or death of a spouse, birth or adoption of a child, increase or decrease in debt exposure, change in business needs, or the comfort of premium relief.
In today’s volatile economic environment, it is also important to evaluate the financial strength and ratings of their existing life insurance company(s), and confirm if policy costs have been increased by the carrier. If you have not met with, or had a discussion with, your life insurance advisor since the sale of the policy, it is impossible to determine if your existing policy(s) are working as efficiently as possible.
A thorough Policy Review can also uncover if policy ownership and beneficiary designations remain appropriate. In the event existing life insurance policy(s) are personally owned, it may make sense to explore the advantages of Trust ownership. If the policies are already owned by a Trust, the Trustees have a fiduciary responsibility to the beneficiaries to ensure that trust assets are appropriate for their situation, and regular, periodic review is certainly warranted.
The Policy Review process will necessitate an analysis of “in-force ledgers” from each insurance carrier, to ascertain how projected costs and benefits of the existing policy(s) compare with original illustrations and alternative forecasts from other carriers. The Affluence Group team will work with you and your clients to ensure that your life insurance policy(s) meet your goals and objectives both now, and in the future, in the most effective manner possible.
The Affluence Group has longstanding relationships with industry-leading, top-rated insurance companies, allowing us to deliver a wide choice of quality products to help you meet your diverse needs.