Life Insurance… does your policy need an upgrade?

Apr 05, 2013

You’ve worked hard to give your family a happy, healthy, secure life. And your family appreciates it. They can sleep easier knowing that you have taken care of everything and that they will be provided for. But is that 100% true? Have you really taken care of everything? If you haven’t reviewed your life insurance policy lately, you haven’t.

Your life insurance policy was probably more than adequate when you first purchased it. But times have changed… the economy has changed… you and your family’s needs have changed…  and your policy may be sorely lacking in some areas.

It’s time to talk to your independent life insurance agent about your current situation and see if any of your needs have changed. Right out of the gate you’re probably saying, “But, I’ve been paying on this policy for years – I don’t want to lose my investment in it by making changes.” Well, that’s not necessarily the case – your agent will advise you as to whether it’s best to stay with your existing policy or exchange it for a better one. You shouldn’t lose any prior investments.

Take a few minutes and think about your life. Has anything in your changed? Have you had another child? Quit smoking? Have your debts increased? If you answered yes to any of these items (or related items), then you need to have your policy amended. For instance, your premium may be reduced because you quit smoking or you may need a new, better policy to cover the additional child or debt.

Bottom line is that your independent life insurance agent is there to help and advise you. Get in the habit of reviewing your life insurance policy regularly as a standard routine. It’s always better to be prepared, just in case the unthinkable happens and your family is left without you.

Following are some general tips, do’s and don’ts to use as a guideline:

–          DO review your policy regularly. Make note of any major changes in debt, additions to family, etc.

–          Make sure your policy covers ALL of your main debts, such as mortgages, credit card debt, loans, etc.

–          DO purchase your life insurance policy as early as possible as the rates change as you age.

–          Consider putting your life insurance policy in trust so that any pay-outs on your policy are not subject to inheritance tax.

–          Think ahead… what will your debts be down the road. Will there be college tuitions? Home improvements?

–          DO purchase automatic renewal on your policy as it will then renew regardless of your health situation.

–          If you have investments such as real estate, a business or stocks, do purchase a long-term policy or universal life coverage so that any taxes due at death will be paid.

–          Quit smoking? Make sure you have your policy amended as your premium may now be lower.

Remember that your independent agent is there to help you guarantee the future stability of your family. Get a life insurance checkup!