Life Insurance Policy Review

When a life insurance policy is purchased, most people put it away for safekeeping and forget about it. After all, now that you purchased that brand new term or permanent policy, you’re covered so what’s the point of thinking about that policy after purchasing it? You may not understand the importance of an annual

life insurance policy review.

Why is it important to review your policy annually? In many cases, most of the life insurance policies that Top Quote Life Insurance reviews, we are able to help the policy owner either save more money or find more coverage for the same amount of money or less.

Saving money is always a great thing, but more importantly, a life insurance policy review can make sure that your life insurance coverage keeps up with life-changing events.

Looking to compare life insurance policies? We can help. Enter your ZIP code to get free quotes from multiple insurers.

Life Changing Events Should Trigger a Life Insurance Policy Review

Life constantly changes and sometimes it changes so rapidly that we forget about making sure that our financial goals for our family are taken care of in the event of the unexpected passing of a loved one.

Top Quote Life Insurance recommends reviewing your life insurance coverage at least once a year. As life changes it’s best to make sure your life insurance coverage fits your family’s financial goals and future plans.

Below is a list of common life-changing events that should immediately trigger the need for a life insurance policy review. Catching some of these life-changing events early enough can result in saving money on your life insurance coverage but most importantly make sure you have the correct amount of life insurance coverage.

RECENT PURCHASE OF A NEW HOME

The purchase of a home is a big financial change, as well as a key reason to have life insurance coverage. A life insurance policy review will make sure there is enough death benefit coverage for your family to continue the payments, on your home, or even a complete payoff of the mortgage for the new home.

NEW ADDITION TO THE FAMILY

Have you had a baby or adopted a child since the purchase of your life insurance coverage? The cost to raise a child can be very expensive. A life insurance policy review can help adjust your coverage to provide the income needed to raise your child.

Read more: Life Insurance Cost: Why You Can’t Afford to Not Be Covered

HEALTH IMPROVEMENT

An improvement in your health that originally prevented you from receiving a preferred (good) health classification can result in lower life insurance rates. Two common improvements could be as simple as lower cholesterol or blood pressure. A life insurance policy review will allow us to review any changes in your health that may qualify you for cheaper life insurance coverage.

DECLINE IN HEALTH

A decline in your health is a serious matter that should be addressed right away and not at the end of your term life insurance policy. There is a good chance that your term life insurance policy has a feature called a “guaranteed conversion option”.

A conversion option allows you to convert your term life insurance policy to permanent coverage that is guaranteed regardless of your health. A life insurance policy review will help determine if converting your life insurance coverage should be done, based on the changes in your health. (For more information, read our “Term Life Insurance Conversion“).

IMPROVED WEIGHT

Height and weight is an additional determining factor in what health classification your life insurance coverage will be approved at. If you have lost weight since the purchase of your life insurance policy, you may qualify for lower life insurance rates. A life insurance policy review will allow us to review any changes in your weight qualifying you for lower life insurance rates.

QUIT SMOKING

The life insurance rates between a non-smoker and smoker are significant. A life insurance policy review will prevent you from missing out on big saving if you have quit smoking for at least 2 years.

PURCHASING OR STARTING A BUSINESS

When purchasing a business or starting a new business, there are many reasons to make sure you have adequate life insurance coverage. A life insurance policy review can ensure you have the correct type of life insurance coverage such as key-man or buy-sell insurance if partners are involved (read our full “Business Life Insurance” for more information).

CARE FOR ELDERLY PARENTS

Are you now responsible for the care of an elderly parent? A life insurance policy review can help you adjust your death benefit to provide funds for the continued care of your elderly parent.

UNDER-PERFORMING UNIVERSAL LIFE INSURANCE POLICY

An under-performing universal life insurance policy can be a nightmare especially if it’s not caught right away. Older universal life insurance policies that were purchased when interest rates were high may not perform as expected later in life.

A life insurance policy review can provide insight into how long your life insurance coverage will last before you experience a big change in your premium in order to keep coverage going.

POLICY LOANS

Taking a loan on your permanent life insurance policy is a great option to have if you need money quickly. Did you know that when taking a loan from your life insurance policy you are required to pay interest on the loan amount?

Unpaid loan interest can have a severely negative impact on how your life insurance coverage will continue to perform. The unpaid loan interest will begin to diminish the cash value, ultimately leaving you with either a very expensive premium or a lapsed life insurance policy.

A life insurance policy review can help provide an outlook on how your coverage will continue to perform, as well as provide alternative coverage options if you are unable to pay back the loan.

CHANGE IN JOB OR BENEFITS

Career changes or job promotions often come with changes in employee benefits. A life insurance policy review can help uncover any gaps in life insurance coverage due to career changes.

RETIRING

Have you recently retired or getting ready to retire from your job? If so, congratulations! Retiring from your place of employment is a great reason to take a look at your overall life insurance coverage needs.

What benefits will your place of employment provide you after you have retired? Do you still require the same amount of life insurance coverage as you may have had during your working years?

A life insurance policy review will allow us to review your overall life insurance needs and make any changes to the overall death benefit or even type of overage.

NEW TYPES OF LIFE INSURANCE

Life insurance coverage is only getting better as time goes on. A life insurance policy review can let you know about new policy features associated with the different types of life insurance coverage.

Did you know that there is a type of term life insurance coverage called “living benefits”?

Living benefits term life insurance allows you to access cash tax-free from the death benefit if you become ill with a chronic, critical, or terminal illness?

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Read more: Life Insurance FAQ

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