A family’s life insurance needs change every few years
After a life insurance policy is purchased, most people put the papers in a file and just pay the premium when the bill arrives.
Problem: A family’s life insurance needs change every few years. Depending upon the type of policy you own, performing a life insurance checkup may take as little as an hour or so and you may save big money.
Before you begin:
- Understand the policy you already own. Many people don’t know what type of insurance coverage they have. Questions to ask yourself. . .
- Do you have a term. . . whole life. . . universal. . . or variable universal policy? If you are uncertain, review your policies or ask Franco Suarez, for an in-depth explanation.
In short, term insurance provides coverage for a set period of time such as a: 1, 5, 10, or up to 30 years.
The other types are cash value policies, meaning that in addition to a death benefit, part of your premium is placed in a savings vehicle and can be withdrawn or borrowed.
How much insurance coverage do you have currently? Chances are you’ve forgotten the amount. So, verify it with your agent, Franco Suarez. Coverage levels that seemed appropriate four or five years ago may look out of date compared with your current financial reality.
Gather all relevant documentation.
If you own a cash-value policy – whole life, universal or variable life – pull your most recent annual statement and ask Franco Suarez for an up-to-date in-force illustration the estimates your future premiums and policy values based on current assumptions.
For Term Policies, the illustration will show estimated premiums.
- Compare existing total coverage with family’s actual insurance needs. A family’s insurance needs keep changing. Many financial planning websites have calculators to estimate your needs. Key events signal coverage is probably needed:
- Birth of a child.
- Purchase of a home.
- New Job with higher income.
- Child’s college graduation.
- Divorce.
- Retirement.
Star thinking about adjusting your coverage levels to suit your family’s current need. If you don’t need as much coverage as you need in the past, cutting your annual coverage can be as simple Scheduling a Consultation.