Posts Tagged ‘life insurance’

What Should You Ask When Reviewing Your Life Insurance Policy?

Wednesday, May 21st, 2014

Throughout the past several months, I have written a couple of articles that explained the importance about why you should review your life insurance policy. It’s one of those things that we get for the “just in case” moment, and then sometimes forget about it. You’d be surprised how often unexpected slip-ups occur with life insurance policies. That’s why it’s so important to review your policy … to ensure that you’re not paying too much or too little for coverage, and to ensure that your policy is working properly for you.

All that said, here are six important questions you should ask when reviewing your life insurance policy:

Has my life situation or needs changed since I purchased my policy

Back in January, I wrote an article that outlined six common life changes that should cause you to stop and review your life insurance policy. These life changes ranged from the purchase of a new home to the changing of your job to the death of your spouse. If your life situation has changed since you originally purchased your policy, you’ll want to evaluate whether you need to increase or decrease coverage.

Have assumptions, such as interest rates, related to my policy change?

When you first purchased your life insurance policy, your insurer made some assumptions based on the market conditions at the time of your policy purchase. But as market conditions change, so can the assumptions your insurer originally made. By reviewing your policy, you’ll be able to determine if you need to make some policy adjustments that will help you receive the best benefits possible for your policy.

Do I have too much or too little life insurance coverage?

When you first took out a life insurance policy, you may have been making a lot less than you’re making now. If you’re making more now, you may find the need to increase your coverage. If you just said “Adios” to your youngest child who left your nest, you may find that you need less life insurance coverage now. It’s important to align your life insurance coverage with your needs and consider whether you’re paying for too much or too little of coverage.

Are my beneficiaries properly identified?

If you were to pass away while your life insurance policy is in effect, do you know who would receive the money? Many individuals name their spouses, children or parents as the beneficiaries. But if it’s been awhile since you purchased your policy, you might want to review it to ensure that your beneficiaries are properly identified. Make sure that your life insurance money will go to the individuals you really want it to go to.

How reliable is my insurer?

When you first purchased your life insurance policy, how well did you research the life insurance company you did business with? If you can’t recall spending a lot of time figuring out whether the company solid and reliable, you may want to evaluate the reliability of your insurer. The industry is rapidly changing, and with industry changes come concerns over whether certain insurers can continue to provide reliable service. If you question or are concerned about this, you’ll want to consider whether you need to change insurers.

Is my life insurance policy aligned with my estate/business plan?

Believe it or not, the lack of alignment between a person’s life insurance policy and their estate/business plan is seen more often than not. There are tax consequences for your beneficiaries if these two items don’t align, so in order to provide your beneficiaries with the maximum amount of money, ensure that your policy aligns with your estate/business plan.   

Life Insurance Review Help

Not sure where you and your life insurance policy stand? Don’t wait any longer. Get a review of your life insurance policy. Contact Rea & Associates, and we can help connect you to individuals who can help you with a life insurance review. You and your family will be glad you did.

Author: Lee Beall, CPA (Dublin office)

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Which Life Insurance Policy Is Right For You?

Monday, March 17th, 2014

Back in January, I shared some insight about six common stages of life where you should review your life insurance policy. Today I want to provide some insight about how you can know what the right life insurance plan is for you.  (more…)

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When Is The Best Time To Review My Life Insurance Policy?

Thursday, January 30th, 2014

Cartoon characters and celebrities all tell you to get it – life insurance that is. Now that you have it (or are at least considering purchasing it), is that it? Do you just sit back and pay your monthly life insurance fee until your policy expires? No way!  (more…)

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Have You Reviewed Your Life Insurance Lately?

Monday, February 4th, 2013

You’re used to discussing your financial assets with your CPA. You talk to your accountant about your income, your business and your estate plan. But there’s one financial asset that doesn’t always come up in discussions of your financial situation: your life insurance policy. Insurance might seem more like a safeguard than an asset, but it’s an important part of your financial portfolio. And, it’s important to review it regularly with the same diligence that you devote to your income, your business and your estate.

Why review your life insurance? Three reasons: to save money, reduce risk and ensure policy suitability. (more…)

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