Make Sure Your Clients’ Insurance Policies Meet Their Needs – Cavalier Associates
There was a time when a life insurance policy was something people didn’t give much thought or attention.
Old timers determined what they’d need to support spouse and children should the worst transpire and paid their premiums every month, on time, without fail. Keep it up and you’ve done your duty. Well, the old days are gone.
Nowadays, your clients have got to treat their life insurance policies a little differently. The insurance industry is far more complex today and its offers myriad, complex products. Insurance demand scrutiny and adjustment to match changing life conditions and meet emerging market opportunities and dangers. Life insurance needs the same close attention as any financial investment.
Clients should review life insurance policies every year in conjunction with their financial advisors and insurance professionals. Clients who are married or in a civil partnership should also make sure to discuss the issues with their partners. Consider life changes, both personal and work-related, and determine if clients priorities have changed over the preceding year. New life factors could dictate a change in the life insurance policy.
For example, as clients age and children have grown up and moved away from home, insurance priorities change. Life insurance should obviously still provide for a surviving spouse, but clients moving into their retirement years may want to consider hybrid policies that provide long-term care benefits. Policies that accumulate cash value may also be used to contribute to retirement funding.
Clients should consider the original goal of a policy and assess the life changes that necessitate an adjustment. Who are the beneficiaries – will they be the heirs to the clients’ estate? Sadly, relationships can change quite drastically. In this vein, a jointly owned policy may need modification if the terms of the intimate partnership change. Finally, any new health issues that could affect the policy’s validity must be accounted for to avoid unpleasant surprises in the regrettable – but finally, inevitable – circumstance of its ultimate need.
Why An Audit of your Life Insurance Policies is Important | Forbes