5 Questions to Ask About Your Life Insurance Policy
Vicki Gunvalson
President/Founder | Author | Podcast Host | Helping you through all stages of your life offering Life Insurance | Retirement Planning | Group and Individual Health Benefits | Auto | Homeowners Insurance
No one really wants to think about the end of their life, or picture their loved ones carrying on without them. So it’s no wonder that many people tend to gather their courage once, enroll in a life insurance policy, and then never think about it again. That’s understandable, but there are good reasons to reconsider your policy every few years. As life changes, so do your circumstances… And so should your life insurance policy.
To ensure that your loved ones are still adequately protected, start by asking yourself these five questions about your life insurance policy.
What kind of life insurance do I have? There are many types of life insurance on the market, but you probably have either a term or permanent policy. A term life insurance policy covers you for a specified period of time (say, twenty years) and then expires. A permanent life insurance policy covers you for life.
How much coverage do I have? Are you sure that this amount is sufficient to provide for your loved ones after your death? As life changes, so will their needs. So it’s important to perform a new needs analysis every few years, so that we can update your policy as required.
Do I have conversion options? If you originally opted for a term life insurance policy, your choice was probably due to the relatively low premiums. But, you probably need to enroll in a permanent policy when it expires. If your term policy offers conversion options, you might be able to save a bit on premiums by converting over to a permanent plan at the end of the term.
Can the policy be contested? In many cases, a life insurance policy can be contested for up to two years after your passing. This could delay the benefits payout to your loved ones.
Who are my beneficiaries? For those of you who purchased a policy years ago, do you remember whom you chose as your beneficiary? Is that person still the right choice? Sometimes, beneficiaries pass away, or a divorce occurs, or some other circumstance arises that makes them not the best choice anymore. It’s important to review this decision periodically.
If you’re unsure about any of these questions, or you’ve realized you need to change your life insurance coverage, give us a call. We can help you run a need analysis and select a policy that best protects your family.