The Importance of a Life Insurance Audit
Provided by Kim Gaxiola
Is it time to review your policy?
LIFE INSURANCE IS HARD
It’s hard to know if you have the right kind. It’s hard to know if you have enough. And it’s hard to know if you need any at all.
The insurance companies have made it even harder by coming up with bewildering names: whole life, term life, universal life. Some life insurance policies have a cash value, while others do not. Some invest that cash value in the stock market, while others pay a fixed rate of interest. Some insurance policies combine all of these ideas.
A recent study by life insurance advocacy group LIMRA discovered that 80% of Americans overestimate the cost of affordable term life insurance – especially millennials, some of whom think the premiums are 200% higher than they really are. How much would a healthy 30-year-old pay per year to keep up a 20-year, $250,000 term life policy? When LIMRA posed that question to consumers, the median response was $400. In reality, the annual premiums are commonly less than $200.1,2
This is why it is important for you to sit down annually with an insurance professional to review how your policy works and how it will help you to protect your family.
When you’re young, a certain type of policy is needed. As you raise a family and take on more responsibilities, your needs change again. At some point, when the nest is empty or other life changes occur, you may not need life insurance at all – or alternately, you may desperately need it to protect your estate for your heirs.
Reviewing your life insurance policies is one way to make sure you have the coverage that is right for you and your family now – not when you bought it.
When is the last time you thought about your life insurance? Is it time to take another look?
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Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment advisory services offered through Cambridge Investment Research Advisors, a Registered Investment Advisor. TechGirl Financial and Cambridge Investment Research, Inc., are not affiliated companies.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
1 - blog.intelliquote.com/the-way-most-people-think-about-life-insurance-rates-is-broken [4/25/16]
2 - nerdwallet.com/blog/insurance/new-rules-mean-lower-life-insurance-rates/ [3/6/17]