My agent wants to review my life insurance. I think he just wants to sell me a new policy.
What would be the benefit to me in meeting to review my life insurance?
Good morning, Brian. I can tell you that we perform an annual review of our clients' insurance policies for two reasons. First, people's needs and net worth tend to change through the course of their lives so their insurance coverage should change commiserate to said needs. Second, we tend to provide term insurance with living benefits as a cost efficient use of their dollars if not a foothold until they can convert to more permanent policies. We use the properly designed permanent policies to eliminate debt, recover lost opportunity costs and supplement retirement; so you can see why an annual review is a must.
If you're not 100% sure that you not only have the right insurance that is affordable, suitable, and sustainable but is also flexible to meet ever-changing needs, then it's always a great idea to have your coverage reviewed by an experience professional who is knowledgeable in how to best leverage insurance for your benefit. The majority look to insurance in case they die, the wealthy - as an addition to their investment portfolio. Let me know if you'd like to discuss your unique situation further. I would encourage you to take the meeting - good luck! | 04.15.15 @ 19:03
It is always a good idea to review your life insurance, perhaps not annually, but every few years. The reason why is because as Paul said, your personal situation has changed, and it is critical to make sure your policy is currently meeting your needs.
If your Beneficiary situation has changed, it makes sense to review. Also, if it has been several years (more than 10) since your policy review, it is critical to make sure your policy is even running. I have had clients find that their policy had expired, and they had no idea that was the case. Some of the Universal Life policies written in the 80's have been self destructing these days, so it is so important to have a review, so you are not throwing good money after bad. So, don't fell your agent necessarily is hunting you down to make you buy a new policy. If you are older, it just might be your needs have decreased, and he might save you some money. Do the review!
| 05.05.15 @ 20:45
It's good to review all your insurance periodically as mentioned circumstances and needs change. No one is going to look after your finances like you. It's a good idea to have a good agent on your team as they can be a real asset. Why not use them? There could be missing opportunities. We have some carriers that offer discounts for having everything in a package. One of our carriers offers a 10% discount off of auto and home insurance for having a life insurance policy with them. Sometimes the discounts can be more than the cost of the policy. Is your agent just trying to sell you more insurance? Maybe. It's probably a combination. Who cares? If the numbers work - you can ensure everything is accurate - you have the protection you and your family need and maybe pay less or find new opportunities. In a world of over seven billion people you can't be an expert at everything. Assemble a good team of counselors and of course visit and use the experts on Money Tips. | 05.05.15 @ 21:14
An annual review is not always necessary unless something has changed. Income, age, debt or family dynamics such as marriage, the birth of a family member, divorce, or your children have graduated college are a few examples of how needs change. These are the things an agent can help you identify.
On average, I recommend a policy review should be considered at least every three to five years. Even if your personal needs have not changed, plans and benefits evolve as insurers continue to find new ways to meet people’s needs. Take advantage of a good agent and use them to assess your circumstances, identify your wants, your needs, and your budget.
A good agent will offer solutions to reach your goals, educate and guide you through the process. An independent agent’s services are typically free with no obligation although some may charge a consulting fee. It is good question to ask.
Most importantly, your agent must be someone you trust. If you feel uncomfortable or pressured by your agent, find a new one.
| 05.06.15 @ 14:21
I agree with what everyone has said, life changes, may need to update beneficiaries, carriers have new opportunities etc. As an example on 2 recent life insurance reviews one of my clients was able to keep the same life insurance premium but get more coverage. Another we actually were able to reduce the premium paid but get more coverage. The couple was very happy reducing expenses and getting more benefits. In both cases their health was still excellent and we were able to make these moves as life insurance premiums dropped with several carriers. A review and a good agent can help make sure your fluid life situation is always moving in concert with the products and solutions in the marketplace. I recommend doing your annual reviews. I have clients who want to meet not just annually but sometimes 2-3 times a year and some more often as they like to run different scenarios by me that they are considering and how it impacts the financial plan we have in place not just with life insurance but other assets as well. We try to work as a team. Hope this helps.
| 05.19.15 @ 18:08