How To Review Your Life Insurance Policy

Whether you recently bought a life insurance policy or have had one for several years, now's the time to review it. Make sure you have adequate coverage and know exactly what's covered. 

Understand the Summary

Your paper policy or online life insurance account will include a one-page summary that outlines the type, amount and coverage your policy offers. Look at it and make sure you understand each line. If you don't, contact your insurance agent for an explanation. 

Verify the Death Benefit or Cash Value

Because life circumstances change, verify that the death benefit is adequate. You might need to increase coverage, and now's a good time to do that. 

You'll also want to verify the accuracy of the policy's cash value. Also, understand how it's calculated as you prepare for the future.

Check the Term

Let's say you bought your 15-year term life insurance policy five years ago when your kids were young. Now, though, your family has grown or your health has changed, and you need a longer term. Use this review to make sure the policy's term is long enough for your needs. 

Read the Restrictions

Does your policy require a waiting period before benefits can be paid or must you undergo an annual health exam? Know the restrictions to reduce surprises, ensure you're following the guidelines and not inadvertently doing something to void the policy.

Drop or Add Riders

Spousal benefits and a premium waiver if you become disabled are two of several life insurance riders. Update the riders on your policy and drop or add them as needed.

Change the Beneficiaries

Has your life insurance policy beneficiary changed? If so, update the policy to ensure the right person gets the money from your policy. 

Reviewing your life insurance policy should be something you do at least once a year. This task ensures your policy is current and accurate. For help meeting your life insurance needs, talk to your agent today. 

Need insurance for You, Your Family or Your Business?
We can match you to a qualified, local insurance expert!
Further Reading
You know you have life insurance, but when was the last time you looked at your policy? Take time right now to review several details as you make sure you have updated and adequate coverage for your needs.  1. Type of Policy Do you h...
Life insurance provides your beneficiaries with financial assistance. In addition to purchasing adequate life insurance coverage, understand if you should list it on your will. Probate Versus Nonprobate Assets When you die, your estate goes int...
Just as one might use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need pr...
Your business insurance value has no relation to your policy premium or your policy premiums, the value of your insurance portfolio related directly to the risks you insure against. If you are not an insurance expert, it is important for you to meet ...
Life insurance gives you peace of mind since it can provide for the financial needs of your dependents after your death. The mature policy can also support a charity or fund a scholarship account at your alma mater. Maximize your life insurance polic...