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 this information on re-evaluating your life insurance policy is helpful.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633
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