Annual Reviews: The Key to Keeping Your Financial Investments and Insurance Up to Date

At JLB Financial, a common question we often hear is, "How can I be sure my financial investments and insurance are always up to date?"

Many clients routinely review their taxes and investment accounts. They prepare for tax returns, engage in tax planning, and adjust their investment portfolios as needed. However, many adopt a "set it and forget it" approach when it comes to life insurance and other long-term financial products.

Investing in various products, from life insurance to annuities and a host of other options, can sometimes feel overwhelming. We've found that regular review sessions with your financial advisor not only keep things organized but also ensure everything is current with any life changes that may have occurred over time. Our clients appreciate these regular reviews, which provide assurance that they are on track to meet their goals and not taking on too much risk due to not keeping up with the economic times we live in.

Often, these matters are put out of sight, out of mind, filed away, and only revisited by family members or business partners passing. It’s time to change this mindset. Life insurance policies, like any other investment vehicle, should be reviewed at least once a year. Regular reviews provide peace of mind and strengthen our relationships with clients. Life insurance is a crucial financial tool that, like any other asset, should be reviewed regularly. Conducting reviews ensures the policy continues to meet our client's needs.

Key Points to Consider During Annual Reviews:

Life Changes: Life insurance policies are often based on the policyholder's circumstances at the time of purchase. Over the years, these circumstances can change significantly. Marriages, divorces, births, deaths, and changes in business can all impact the needs and goals. Regular reviews help ensure that their financial plan aligns with the client's current situation and future objectives. This may include updating estate planning instruments like wills or trusts, as well as making beneficiary changes and ownership adjustments.

Performance: Reviewing??performance is crucial to determine if it still meets the client's needs such as death benefits, cash value growth, and additional features like long-term care riders. These riders can significantly protect your estate that you have worked so hard to build. We have seen unexpected healthcare costs erode estates, sometimes as much as $25,000 per month. This is the value of reviewing and making sure you are protected from catastrophic events.

Modern Features: Many older policies may lack modern features like chronic illness or long-term care riders. These benefits can be critical for clients as they age. Reviewing and potentially updating the policy can provide added security and peace of mind.

Annual reviews ensure that you are protected from these inevitable events. There are always new changes that allow additional protection for your estate. We believe reviews at least annually are essential for clients who want to maintain a comprehensive financial plan. Scheduling future reviews in advance is an effective way to ensure consistent and proactive planning.

If you would like to see how this could benefit you, reach out to us at JLB Financial or here on LinkedIn, email us at?[email protected], or call us at 323-547-8990.