Many people think of life insurance as an unpleasant topic that they must confront once. Then they enroll in a policy and forget about it for the next few decades. While it’s understandable that you don’t want to think about this topic frequently, you really should review your policy every few years to help ensure that it’s the best one for your situation. Otherwise, your family might not be adequately protected.
Take the time to ask yourself these five questions about your life insurance policy, and if you need help answering any of them, give us a call.
What type of life insurance policy do I have? You probably have either a term or permanent life insurance policy. A term life insurance policy only covers you for a certain number of years before expiring, whereas a permanent life insurance policy covers you for the rest of your life.
What are my conversion options? If you do have a term life insurance policy, you might be alarmed at the cost of purchasing a new policy when your term expires. However, some term life insurance plans offer conversion options, that allow you to convert into a new (permanent) policy for a lower premium than you might otherwise pay. Check and see if your term policy offers a conversion option.
Can my life insurance policy be contested? The whole point of life insurance is to provide a sum of money to your loved ones in the event of your untimely death. But if the policy can be contested, they might not receive the payout right away. In most cases, a life insurance policy can be contested for up to two years after your death, if the provider has any reason to believe some sort of fraud has occurred.
Have I selected the right beneficiaries? If you purchased your policy years ago, it might be time to review your beneficiary selection. If your beneficiary has since passed away, would you want their beneficiaries to receive the payout? What if you’ve divorced your spouse; do you still want them named as your beneficiary? There are other reasons that selecting a new heir might be a good idea.
How much coverage do I have? This is the whole point of having life insurance. But is your policy really sufficient to cover the financial needs of your loved ones? Every few years, you should perform a new needs analysis to make sure you really have the right size policy for your needs. Give us a call, and we’ll be happy to help you evaluate and update your life insurance policy.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.