I recently came across an article about an expectant mum who found out she had stage 4 cancer at age 33. Feeling the unpredictability of life, I’m compelled to write this piece.
Reviewing your life insurance coverage is a crucial part of financial planning and there are some key questions to ask to ensure you still have the right policy in place at the right cost.
Getting started: what you need
- A copy of your original life insurance policy illustration
- Summary of the policy features and benefits
Your current policy and circumstances
- Is my life insurance policy still in force?
- What type of policy is it? For example, term insurance or whole life insurance
- Have my needs changed?
- Is this still the right type of policy for my needs?
- Do I need more or less life insurance cover than I currently have?
- Can I still afford the premiums?
- If I need to increase my cover, has my health deteriorated or am I leading a healthier lifestyle that could mean better pricing for increased cover I may want?
Beneficiaries of your life insurance policy
- Who are your named primary beneficiaries?
- Are your name primary beneficiaries still those you would like to benefit from the proceeds of your policy?
Policy features and benefits
- Does my policy have any guarantees? If so, what are they? Are they still beneficial to me?
- Are there any ‘policy review’ points that I can benefit from? E.g. ability to increase the cover without further medical underwriting.
- Can I borrow against the cash value of my policy from the insurance company? If so, do you want to take advantage of this feature?