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?
Answers | 4
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!
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.
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.