Protecting your assets

3 Reasons to Review Your Life Insurance Policy

5 Minute Read

While it’s ok to postpone some things for later, reviewing your life insurance shouldn’t be one of them.

Life insurance plays a vital role in financial planning by helping you meet certain financial goals and objectives. But unlike putting off a visit from a long-lost cousin or cleaning the garage, postponing your annual life insurance review can have a significant impact on your financial plan.

Here are three important reasons for not putting off scheduling your annual life insurance policy review.

  • You’ve experienced specific life-changing events. Marriage, divorce, a new home, the adoption/birth of a child, retirement, a job change, a new business – these are just some examples of life-changing developments that can signal a need to modify or make changes to your policy, including policy ownership and beneficiary designations.
  • Your policy, limits, and coverage may be out of date. In addition to life changes, you may have a need to increase your current policy limits and/or add additional riders. Also, policies have modernized, some life insurance costs have decreased, and life expectancies have increased—which all mean you may be able to exchange an older policy for a new one with more benefits to you and your family.
  • You’ve had a change in goals. There can be times when your life insurance policy is no longer in line with your current goals. For example, are you focusing more on meeting retirement or estate planning objectives and less on income protection now that you’ve paid off your mortgage or become an empty nester?

Not sure if you need a life insurance policy review?

There are dozens of other valid reasons to review your life insurance policy. The good news is that you don’t need to be an insurance expert to determine where you may need to make changes. The following checklist is a perfect place to start.

If you can answer YES to any of the following questions, you should consider reviewing your current policy. Your Relationship Manager can help you with a complimentary insurance policy review through UnionBanc Insurance Services.

  • Has your family grown?
    This includes a new child, aging parents, an individual with special needs.
  • Have you recently married?
    Sharing finances as a married couple often creates a need for life insurance on both lives.
  • Have you recently divorced?
    You may need to remove your former spouse as beneficiary and/or maintain a new policy for the benefit of your children.
  • Have your beneficiaries changed?
    Changes to your family, the sale of a business, or receiving a large inheritance could necessitate an update.
  • Do you have concerns over your policy’s performance?
    A review can reveal a need for a change of investment funds and underlying asset allocation.
  • Has your income or net worth increased?
    Make sure your coverage is proportionate to your income.
  • Are you thinking about estate planning?
    When used strategically, life insurance can be a valuable tool.
  • Have you had changes in your health?
    It’s possible your policy can be used to help with medical expenses, including long-term care.
  • Are you focused on retirement goals?
    A permanent policy can help supplement your income in retirement.
  • Do improvements in underwriting and pricing have you considering additional coverage?
    Increased longevity has led to improved premium pricing by some carriers.

 

Contact your Relationship Manager to schedule your complimentary policy review.

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Clients requiring insurance advice will work directly with representatives at UnionBanc Insurance Services, a division of MUFG Union Bank, N.A. with a California domicile and principal place of business at 1201 Camino Del Mar, Suite 208, Del Mar, CA 92014. California State Insurance License No. #0817733. Non-deposit investment and insurance products: • Are NOT deposits or other obligations of, or guaranteed by, the Bank or any Bank affiliate • Are NOT insured by the FDIC or by any other federal government agency • Are subject to investment risks, including possible loss of the principal amount invested • Insurance and annuities are products of the insurance carriers