1. HAVE YOUR CLIENT’S NEEDS CHANGED?
Is the original reason they purchased their policies still applicable? Often, the need for life insurance changes: Mortgage, Children, Business, Marriage….A review helps you determine why they may need to make adjustments to their life insurance today and will allow you to add to their life insurance portfolio accordingly.
2. HAS THEIR HEALTH OR LIFESTYLE CHANGED?
Changes in their health or lifestyle can have a profound effect on policy costs or on the type of coverage needed. A review helps you make sure that your client’s lifestyle and that of their family are protected.
3. IS THEIR COVERAGE COMPETITIVELY PRICED?
Life insurance premiums are being driven down due to several factors:A review determines whether their coverage is cost effective or can be obtained from a stronger carrier for less money.
4. IS THE AMOUNT OF INSURANCE COVERAGE ALIGNED WITH THEIR NEEDS?
As your client’s net worth increases, it is not unusual for there to be a need to increase their coverage. The purchase of additional life insurance to meet their family’s needs may be warranted. In contrast, occasionally their needs may change in a way that will allow you to decrease coverage. In both cases, it is important to have their coverage in line with current needs. If coverage is inadequate, they may be able to purchase additional life insurance to meet their family’s needs. A review determines the appropriate amount of life insurance they should maintain.
5. IS THEIR LIFE INSURANCE COORDINATED WITH THEIR OVERALL ESTATE OR BUSINESS PLAN?
Lack of coordination between life insurance and an estate and/or business plan is common. Your client may be in need of insurance for a Key-Man policy or a buy/sell agreement. Perhaps something as simple as a policy which will collateralize a loan. A review helps identify gaps in your planning and will offer your client ideas to consider which will address the gaps.
6. ARE THE BENEFICIARIES CORRECT?
Do the beneficiary designations continue to align with their wishes? Often circumstances have changed but beneficiary designations have not.A review will allow them to consider whether beneficiary changes are warranted.
7. DO THEY HAVE THE MOST APPROPRIATE POLICY TYPE FOR YOUR CIRCUMSTANCES?
The types of life insurance products available have changed dramatically in the last 20 years. Term and permanent life insurance policies are now available in many forms. Each type has unique characteristics that may be better suited for some situations than others.
A review helps determine if existing coverage is adequate or if a new version may be superior in performance, cost effectiveness, and compatibility. A review of your client’s life insurance may result in their desire to change their current coverage.
8. IS THEIR POLICY PERFORMING AS ORIGINALLY PRESENTED?
Changes in interest rates, changes in variable policy sub account performance, and the cost of insurance can affect several aspects of your client’s policy, including the amount of their premium, the length of the premium paying period, and the duration of their policy. A periodic review will help determine if adjustments will improve performance or are necessary to preserve the benefits under the policy. In some cases, it may be necessary to upgrade to a better policy.
9. DOES YOUR CLIENT HAVE THE NEW INSURANCE OR THE OLD?
There are new products being developed all the time, there are now policies that can provide for your clients in LIFE with LIVING BENEFIT RIDERS that can be used for Long Term Care expenses as well as Chronic Illness. These benefits are integrated into a permanent life Insurance policy that also provides for their family should they pass. The products are relatively new so most people don’t even know these policies exist!
10. HAS YOUR CLIENT RECENTLY QUIT SMOKING?
If they have, their premiums will change drastically… believe it or not this is often a factor that is sometimes overlooked. A review of their policy could result in a savings of thousands of dollars for your client.