With the arrival of spring comes the urge to clear out clutter, clean the windows and dust off the cobwebs of every corner of your home. This would also be a great opportunity to dust off your life insurance policies to make sure you have adequate coverage at the most competitive rates. Life’s changes happen quickly: Marriages…the birth of a child or grandchild…the purchase of a new home…changes in your business…planning for retirement. Almost any major life event can have an impact on your life insurance needs.
Unfortunately, most people don’t take the time to routinely evaluate their life insurance planning to make sure it keeps up with their ever-changing lives. A recent study from LIMRA, a life insurance trade and marketing association, found that three in 10 American households – or 35 million people – are uninsured or underinsured. Additionally, more than half of Gen X and Gen Y households – or 30 million people – need more life insurance.
Life insurance can play a key role in helping you plan for your family’s financial future. While the basic use of life insurance is to provide for those who would suffer a financial loss due to your death, it can also be a helpful tool in planning for retirement or business continuation. While performing your life insurance spring cleaning, here are a few things to keep in mind:
Gather all of your life insurance policies and critical information together. Consider keeping your policies in a fireproof box or safe deposit box. Organizing your information helps those left behind during a very difficult time.
When death occurs, surviving family members must be ready to immediately handle a number of important matters. A simple list of your policy information can be invaluable to your loved ones. Make a list of your policies. Include the policy numbers, beneficiaries and company contact information. The accuracy of the information is essential to handling these matters smoothly.
Once you have everything in one place, it is easier to evaluate the amount of coverage you have and consider whether you need to amend beneficiaries. Your local independent agent is an excellent resource for reviewing your coverage and your current needs.
This spring, add a life insurance policy review to your checklist. Contact your agent to schedule a policy review. There is no obligation to change your current policies or to buy new ones. The peace of mind in knowing you’ve planned for your family’s financial future is free – and priceless.