There is good reason for a life insurance review.

By Ken Arvidson, CLU, MSFS

June 18, 2015

It’s done.The application and medical process has been approved and you now have life insurance coverage. So it's time to put the policy away and forget about it. Right? Absolutely not. 

Reviewing your life policies from time to time is a good habit to get into because circumstances change and events that happen in everyday life ultimately affect your coverage.

Since the 4Wealth office opened in 2012, we have been suggesting our clients meet for life insurance reviews. Many of you have been with us for a long time and life insurance is another aspect we factor into doing the best job for you. By reviewing your policies together, we can discover circumstances that may impact your coverage. For instance:

  • Family changes. Have you recently married or had children? Are your children now grown and no longer in need of your support? Or have you divorced and your need for life insurance has changed?
  • Health changes. Exercise, weight loss and healthy eating can have a positive impact on your insurance rates. If you are doing these things, there is a likely chance some prescriptions may no longer be needed or dosages may be lowered. This could mean lower premiums too! Or if the opposite happens and there is a decline in health, you could look into increasing a group policy at work. Usually there is no exam to prove you are insurable.
  • Beneficiary changes. Has your current beneficiary passed away? Do you have a new spouse? Are your children old enough and responsible enough to receive the proceeds of your policy? Should they be named beneficiaries?
  • Income changes. Are you a college graduate who just landed a great job? Promotion with a nice raise? Or have you lost your job and need to adjust the premium payments temporarily?
  • Mortgage changes. You may need less life insurance if the house is paid off. It's also possible that some of those funds can be shifted into Long Term Care insurance if you are getting a little older. Or perhaps you just bought your first home and now you have a liability that needs to be covered if you pass away.

At 4Wealth, we consider an insurance review just as important as budgeting, tax planning and making prudent investments decisions. Make it a priority to get together with us for a life insurance review.

Email Ken if you need guidance.


This article was featured in 4SIGHT. Sign up free to receive 4SIGHT, our monthly newsletter of helpful financial articles, tips, events, and monthly IRS deadlines. 

 

   

Back to List

Client Center

QuickBooks Desktop

QuickBooks Online

Using Your Client Organizer
How to Review My 1040
Using File Exchange
Remote Payroll

Go Mobile

Tax & Accounting: access your files from your mobile device. Learn More...

iOS App | Android App

TD Ameritrade: access your account with your iPhone. Learn more…

iOs App

Phone: (708) 695-5300 • Fax: (708) 456-9130