Why Review My Life Insurance Policy Annually

2024 may bring about a lot of changes. Consider the changes in your own life: you may have started a new career, your family may have grown in number, you may have purchased a new home, or done any number of other things.

Why should I review my life insurance policy annually? Life Insurance offers significant financial protection to your family in the event of your death. It is important to check it regularly to ensure you have adequate coverage that is consistent with your ever-changing life circumstances.

 

Let’s Take a Look at the Main Reasons Why Evaluating Your Life Insurance Policy on a Yearly Basis is a Good Idea:

  1. Your Health Status May Have Changed…
  2. Your Family May Have Grown in Number…
  3. You May Have Changed Jobs…
  4. You May Have Started a New Business…
  5. You May Have a New Marital Status…
  6. You May Have Changed Your Beneficiaries…
  7. You May Have Bought a House…

(read below)

Why Review My Life Insurance Policy Annually (1)

1. Health Status:

Updating your life insurance may not be the first thing that comes to mind when you have a health issue, but it is a critical moment to examine your policy. If your health has deteriorated, you may want to enhance your coverage or look into other coverage options. On the other hand, a better health diagnosis, such as losing weight or quitting smoking, may help you receive a better rate.

2. Family Has Grown:

Your life insurance policy protects more than just you. As children enter the scene, your costs increase. How would your family pay for daycare, groceries, bills, and even future college tuition if you were no longer able to contribute? Life insurance can assist with paying these along with many other expenditures, allowing your children to continue living the same way they did after you passed away. Whether you’ve had a baby or adopted a child, you should update your life insurance policy accordingly.

3. Changed Jobs:

Make sure to examine your life insurance coverage if you start a new job where you expect your income to increase. Your spending habits may change as your income increases, so make sure your policy can still adequately cover your family’s expanding demands. The same applies to a sizable pay increase or promotion within the same company!

4. Started a Business:

Starting a new business entails increased financial and tax requirements. Whether you’re starting an online / brick-and-mortar business, make sure your insurance coverage meets your needs. Your business and family can avoid financial hardship in the event of your passing. You can also change your life insurance policy to distribute your current estate, including your new business, evenly among your beneficiaries.

5. New Marital Status:

It’s vital to amend your life insurance policy to reflect your current marital status, regardless of whether you were recently married or divorced. Examining your life insurance if you recently got married can ensure that your spouse is covered financially in the event of your death. As a couple, you most likely have more financial responsibilities than you did when you were single. Without your pay, how would your partner pay for all those bills? Conversely, if you just went through a divorce, changing your policy ensures that your loved ones—rather than your ex-spouse—will get the death benefit.

6. Changed Your Beneficiaries:

You should annually verify that the individuals you wish to receive benefits from your life insurance policy are still on your list of beneficiaries. The main purpose of life insurance is to give your loved ones money in the event of your death; therefore, you want that money to go to the people you intended. For example, you could want to add your adult children as beneficiaries once they turn 18 or 21, or remove your ex-spouse from your beneficiary list following a divorce. You should think about how your insurance payout would work for each beneficiary based on their location or your relationship. In addition, it’s also important to inform and educate your beneficiaries about your policy!

7. Bought a House:

If you’ve just purchased a home, review your insurance coverage to guarantee that your beneficiaries can cover the cost of your new property in the event of your death. A period of grief is no time to be forced to sell your home. Make sure your coverage covers the cost of your mortgage payments so that your spouse does not struggle to pay them on one income. However, if you have just paid off your mortgage or refinanced your house, you should evaluate your coverage.


 

These are just a few examples of when it is essential to check your life insurance policy. When reviewing your policy annually, make the required revisions to ensure that it still addresses all of the following factors:

  1. Your premium payments remain manageable and affordable.
  2. Your insurance is not about to expire soon.
  3. Your death benefit is sufficient to meet your beneficiaries’ existing financial needs in the event that you die.
  4. Your beneficiary list comprises everyone who should benefit from your life insurance.
  5. Your current life insurance coverage matches your needs and expectations.
  6. You are getting the best out of any new coverage options that your insurance company offers.
  7. One of the most effective methods to ensure that your loved ones are properly insured is to engage with a professional insurance agent who can guide you through the process.

 


 

Our Insurance Manager Gregory P. Killilea will be happy to review your life insurance policies with you and assist you in making any changes needed.

Click HERE to schedule a meeting today!

https://outlook.office365.com/owa/calendar/GregoryKillilea@assetstrategy.com/bookings/

– or contact an an Asset Strategy Advisor to if you have any questions.

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Also, check out our FREE  Asset Strategy guide – “2024 – What Issues Should I Consider When Reviewing My Existing Life Insurance Policy?”2024 What Issues Should I Consider When Reviewing My Existing Life Insurance Policy


 

Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.

This is for informational purposes only, does not represent legal or tax advice does not indicate suitability for any particular investor, and does not constitute an offer to purchase or sell investments. Please consult the appropriate professional regarding your individual circumstance.

Product guarantees are based on the claims-paying ability of the issuing company and assume compliance with the product’s benefit rules, as applicable.

Advisory services are offered through Asset Strategy Advisors, LLC (ASA). Securities are offered through representatives licensed with either Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Insurance is offered through Asset Strategy Financial Group, Inc. (ASFG). ASFG and ASA are independent of CIS.

 

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