A life insurance policy review
is your opportunity to assess existing plans in order to identify any gaps in coverage resulting from a change in circumstances, health or the financial needs of beneficiaries. It also gives you the chance to dust off old policies to confirm that beneficiaries are current, that the policy is performing as intended and that the coverages will be in effect when needed.
This checklist provides the steps for an effective life insurance policy review. By reviewing each item, you’ll be able to assess whether you have enough of the right coverage or if you should schedule a comprehensive “life check-up” to fill any gaps or update information.
□ Step #1: Think about major recent life changes
Life changes in big and small ways each year, and as it does so do your life insurance needs. A few life events that might affect these needs are: • Marriage or divorce• Expanding your family• Purchasing a house• Retirement• Losing a loved one• Starting a businessWhile insurance may not be top of mind during these times, failure to make necessary changes to your policies can lead to uncovered losses.
□ Step #2: Assess current policies to determine if there is sufficient insurance coverage and to ensure that coverage has not lapsed.
According to the Life Insurance Marketing and Research Association’s (LIMRA’s) 2021 Insurance Barometer, only 52% of American adults said they have life insurance coverage, and 29% of American workers believe the coverage they get through work is enough. However, without additional life insurance coverage, 42% of families would face financial hardship within six months, and 25% would suffer financially within a month.Therefore, a key goal of any life insurance policy review is to determine if your coverage is realistically sufficient should any major life event, including and similar to those listed above, occur.
□ Step #3: Schedule a life check-up for recommendations on updating life insurance policies.
Once you’ve completed the necessary steps to prepare for your policy review, you can schedule a life check-up
to ensure your life insurance policy aligns with your significant life changes. Updating your policy ensures that your family and/or your business is covered, creating peace of mind for everyone involved.