Why is it that one of the most important financial documents a family or business can own is so often forgotten? Thrown in the back of a drawer, or on the floor in the closet? In fact, according to LIMRA, 62% of Americans that own life insurance do not know what they have. YOU have an opportunity to help!!
Life Changing Events – Always a good reason to do a policy review
- Family changes such as a marriage, birth of a child, and divorce
- A change in jobs or benefits
- The recent purchase of a new home and mortgage
- The purchase of a business or a change in the business value
- A need to take care of an elderly parent
- Improved health and lifestyle changes
Underperforming Permanent life insurance plans – There are still many out there
- Universal life insurance purchased prior to the year 2000 needs to be reviewed to make sure it is still performing as expected. With the drop in interest rates and no adjustment to premium payments, these policies could lapse early.
Term life insurance at the end of the level premium period
- In a prior blog post, “Policy Reviews, Necessary and Easier Than You Think”, I spoke about “Riding the Wave” and the large number of term life insurance policies written in 1999 and early 2000 that are coming to the end of their level premium period. Term life insurance does need to be reviewed!
Who are you looking for?
Younger Clients who may have purchased term life insurance at an early age and now have a long-term life insurance need.
Middle aged clients who purchased term life insurance to protect their family but now may be paying more than necessary or have a permanent life insurance need.
Business Owners who are utilizing life insurance to handle their continuation plans or key person coverage. Employees leave, values change, and yet the insurance may not have been reviewed.
Trustees who may place themselves, the goals of their clients, and named beneficiaries at legal risk by not monitoring their life insurance. Is the policy still performing as intended?
Why should you do policy reviews?
- Deepen the relationship with your clients and demonstrate a long-term commitment to be there for them.
- Provide an additional value to your clients, trustees, and other professionals to more easily acquire referrals
- Reassure your clients that the state of their life insurance is still meeting their needs
- If your client’s policy is lacking, help them to get better performing plans
- Improved mortality, new chronic illness riders, guarantees that were not offered in their original plans are available today. You can improve their benefits.
- Build yourself a new revenue stream!
Life insurance policy reviews are easier than you think
With a trusted BGA that has a Policy Review Program you no longer need to gather policies, statements etc. A simple authorization allows the BGA to order what they need to do a policy review for you, gathering the inforce information directly from the life insurance carrier. Simply get the authorization signed, send it in, and wait for your review. It is that simple!!
So….start asking ALL of your clients “When was the last time your life insurance was reviewed?”