Like all aspects of your finances, your life plan insurance needs can change. We should regularly review your insurance coverage to ensure it offers the best possible protection. When life changes so should your insurance coverage. Your evolving insurance needs depend on your current and changing life situation and your financial goals. Our review should be based on an exploration of the key aspects of your life plan and life plan insurance needs. Here are three to consider.
1. Life events – Some of the key developments that can call for life plan insurance changes can include marriage, divorce and a change of income. For example, perhaps you need to increase insurance coverage because your family is larger and you want to leave more for your heirs. Alternatively, perhaps you no longer have a need for as much insurance because you’ve built up wealth, paid off your mortgage and your kids have finished their schooling.
A review of your life plan insurance might even reveal how we can save you money on life insurance coverage. So for instance, if your health has changed for the better by losing a great deal of weight, your high cholesterol has dropped or you’ve quick smoking — we might be able to take advantage of the breaks on life plan insurance premiums some insurers offer under those circumstances.
2. Beneficiaries may change over the course of your life. One thing we should always review is your beneficiaries. Since they’re the ones who receive the proceeds of your policy, it’s important that we always make sure they’re who you want them to be and that you’re taking care of them in the best way possible.
You may want to make beneficiary changes as you go through life, to accommodate new children or grandchildren or even to leave insurance proceeds to your estate so they can be distributed through your will. It depends on your current and changing situation and your financial goals.
3. Your financial situation circumstance could affect your life plan insurance needs. We should explore your insurance coverage in relation to your overall financial picture. Remember, insurance is just one part of a long-term financial strategy, which means the coverage that’s right for you depends on other aspects of your financial life.
If your life insurance policy includes an investment component, we can explore how it fits in with your overall plan. We’ll examine its investment performance and consider the best ways to use the cash value.
Together, we can determine whether the types of policies and the levels of coverage you already have are still appropriate for you and your family. If changes are appropriate, we’ll make recommendations. Let’s discuss your life insurance coverage at least once a year. Then you’ll have the peace of mind that comes from knowing you’re well covered.