Aug 27 2008
Reasons to Conduct a Personal Policy Review
Life insurance is typically one of the largest and most valuable assets owned by an individual, a business, or a trust. When your life insurance policies were originally purchased, certain assumptions were made regarding policy charges, interest rates, planned premiums, etc. Perhaps the original reason for your purchase still exists, or your needs might have changed, requiring more or less coverage. It is imperative that this valuable asset be evaluated, reviewed, and analyzed on a periodic and comprehensive basis. And especially because the life insurance industry has undergone many changes in the past decade, it is now more important than ever to re-evaluate your policies in order to be sure that your life insurance will be there when you need it.
Reasons to Conduct a Personal Policy Review
There are many reasons to conduct an in-depth review of your life insurance. Some of these reasons are as follows:
- Your need for life insurance may have increased or decreased.
- Extended periods of low interest rates may have adversely affected policy performance, and more premium dollars may now be needed to meet policy charges.
- Your health might have improved, qualifying you for a better rating.
- Your family or business situation may have changed.
- Loans, withdrawals, or other policy activity may have affected policy performance.
- Premiums may not have been paid as planned.
More favorable medical underwriting classes are now being offered compared to years ago.
A thorough, detailed, and unbiased analysis will demonstrate whether, and to what extent, your current life insurance policies can be improved upon. If you are considering making changes to your existing life insurance program, it is important to weigh the implications of your choices. There is no “right” answer, only the need to determine what is most important to you.
This Personal Policy Review will provide you and your professional advisory team with the tools necessary to determine if there are any new opportunities to be pursued and to analyze your policies’ performance against original projections.
In addition: This in-depth analysis will disclose options for you to consider if modifications or alternatives to your current program need further discussion. The analysis may result in helping to maximize the value of your current policies and help keep your estate plan in line with your original goals. Possible improvements to your underwriting class can be considered. Valuable new riders might be available.
