You’ve worked hard to build a great career to support your family and have invested in a new life insurance policy to protect them if anything were to happen to you. The hardest part is over; you’ve taken a huge step towards protecting your loved ones from unexpected financial hardship. Life changes in the blink of an eye, so it’s important to review and re-evaluate your life insurance policy to ensure that your family will be well taken care of. Here, we’ve compiled a shortlist of frequently asked questions about re-evaluating your existing life insurance policy.
Why should I re-evaluate my life insurance policy?
A policyholder should re-evaluate their policy any time a major life change occurs, including having a baby, getting married, buying a home, or even switching careers. Because of these changes, policyholders may need to buy more coverage, add or change a beneficiary, or converting from a term policy to a permanent policy.
How often should I re-evaluate my life insurance policy?
Most experts recommend re-evaluating a life insurance policy every few years. Re-evaluating doesn’t mean conducting a complete overhaul of your policy, but rather setting aside a few minutes to reflect on the changes someone has experienced since last assessing their policy. By setting aside half an hour to analyze any life changes, like a new job or buying a home, policyholders will be able to better understand what their life insurance needs are and can more effectively communicate those needs to their agents.
What can I change/add to an existing policy?
One of the most common reasons policyholders re-evaluate their policies is to purchase more life insurance coverage. Some policies include special riders that make it easy to add a spouse or child to an existing life insurance plan. Policyholders without a guaranteed insurability rider can apply for an additional policy that adds to their existing coverage.
Policyholders are also encouraged to re-evaluate who is listed as their designated beneficiary, especially after divorce or remarriage. All policyholders are welcome to change their beneficiaries at any time by filling out a brief form through their insurance provider. Contact your life insurance provider with any questions regarding re-evaluating your coverage.
I have a term policy. What happens when my term is up?
Term policies often last 20 to 30 years and provide a set amount of coverage as a death benefit. Term policies are often purchased to end around the time a mortgage ends or the time the policyholder is set to retire and offers lower premium rates over a set amount of time. When these policies end, however, policyholders can choose to let the policy close, purchase another term policy, or convert the policy to a permanent policy that will build cash value over time. The best choice varies depending on a family’s specific needs. Contact a life insurance agent to discuss the best option for you regarding your term life plan at (888) 539-1633.
Life Insurance Questions?
We hope that this information on re-evaluating your life insurance policy is useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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