The Importance of a Life Insurance Policy Review
As you can imagine, it was a tragic day when David died leaving his wife Linda a widow with two young children. It became doubly tragic when Linda discovered that the beneficiary of David’s life insurance policy, the policy that Linda was counting on to provide the support she needed, was David’s ex-wife, his first wife.
Across the street, Tim and Susan had been paying $200 per month on their universal life insurance plan for the past twenty years. They had received statements from the insurance carrier annually, but they really didn’t know what they meant. They just assumed everything was fine until they received a notice indicating that their policies were about to lapse. When they called the insurance company to inquire, they were told that they would need to triple their monthly premiums. That wasn’t good news considering they were starting to prepare to retire.
You may think that stories like these are unusual, but we hear similar stories all the time. The fact is that life insurance is an important asset. It has significant value, and like other assets with similar importance, it needs to be managed and maintained.
Just as maintaining your car requires more than filling it with gas, maintaining your life insurance involves more than just paying the premiums. Like an instrument panel, annual statements often provide vital tidbits of information, and a little adjustment today can prevent a painful breakdown later. Also, given how much life changes from time to time, checking occasionally to make sure your beneficiary designations are up-to-date is simple to do today, but impossible to correct if suddenly you are gone.
These are the types of things we review with you when we meet to review your coverage. Also, when we meet, we always look for opportunities to save you money or provide you with better coverage.
A meeting to review your coverage is part of our free service to you, so please give us a call. We would love to put your mind at ease, since you’ll know for certain that your coverage is as good as it can be.