Ask Yourself These Questions About Life Insurance

Financial tips

Ask Yourself These Questions About Life Insurance

Posted by Infinite Wealth Advisors, LLC
7 years ago | August 28, 2017

grandfather and boy fishing togetherIf you already have a life insurance policy, you might feel slightly annoyed when people ask you about it. You’ve already purchased a policy, and no one wants to dwell on boring financial contracts or their own mortality. That’s understandable. But unless you are familiar with the details of your policy, and review it every few years, your family might not be as protected as you believe. So, take the time to ask yourself these five questions about your current life insurance arrangement.

What type of policy do you have? If you have a term life policy, you know that the contract covers you for a specific number of years, and then expires. A permanent life insurance policy offers coverage for the rest of your life. It’s important to keep this in mind.

What are your conversion options? Let’s assume you do have a term life insurance plan. As you approach the end of your coverage, you might discover that the cost of purchasing a new policy is considerable. However, if your current policy offers conversion options, this might be the more affordable choice. Investigate this issue before the end of your term life coverage.

Can the policy be contested? In the event of your death, you want your loved ones to have access to your payout. But the policy can be contested if your insurance company believes you lied on your initial application. In most cases, your death benefits can be contested for up to two years after your passing.

Have you selected the right beneficiary? If you named your beneficiary years ago, when you first purchased the policy, you might need to review that decision now. In the case of divorce, you probably don’t want your former spouse to receive the payout of your benefits. Or, perhaps your beneficiary has passed away, or experienced other life changes. It’s possible that someone else should be named as your heir.

How much coverage do you have? More to the point, how much coverage do you need? As life changes, so do the needs of your beneficiaries. Everyone should perform a new needs analysis every two to three years, to make sure they have the right amount of life insurance coverage. Schedule an appointment with us, and we can help you evaluate your coverage needs and update your policy as necessary.

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