It’s smart to “spring clean” your life insurance every year, as the life insurance market changes over time. A new insurance product can give you the opportunity to buy higher insurance levels at a lower cost. With the help of a qualified insurance agent, you may find that you have paid too much. A life insurance policy is an ideal way to protect your loved ones from a financial disaster if you die suddenly, but insurance companies vary in the type of coverage they offer and the cost of monthly premiums. In order to “spring clean” your life insurance, it is necessary to:
Review your current life insurance policies
A better option for a life insurance policy may have become available on the market, with higher coverage levels at the same monthly premiums, or lower. Do not let your life insurance continue without looking at the current insurance products on the market ̵1; you can enjoy the savings and better protect the people you love should you die suddenly.
Evaluate changes in your living conditions
You may have a higher paid job, bought a home, had children or married or divorced. Each life change may require changes to your life insurance, including changing or adding beneficiaries, increasing insurance limits, or converting your time insurance to a full life insurance policy.
To increase the death benefit
Your life insurance will pay your named beneficiaries a death benefit if you pass away. The amount paid may no longer reflect the financial needs of your loved ones. The amount needed can now include the cost of a college education for your children, paying off a mortgage or providing your loved ones with financial support during estate registration, which can take years.
Upgrade your life insurance
Many term insurance policies offer policyholders the opportunity to convert to a full life insurance policy. These policies provide a number of positive benefits. Depending on the insurance, your premiums will not increase, and the insurance will be a valuable investment. Over time, it will build a cash value and grow tax-free. When the cash value increases, you can take advantage of the asset that borrows from the insurance at a low interest rate. Several products for life are available, each offering different benefits. A life insurance policy can offer the opportunity to convert it to a lifetime. If your life insurance does not offer this benefit, it may make sense to upgrade to a better insurance.
Review the policy period
Your life insurance has a certain number of years of protection for your loved ones. The term is usually between ten and thirty years. You can choose to buy insurance with a longer term, based on your family’s changing needs, such as the cost of a college education for children.
Go from a renewable premium to a level premium
Some life insurances cover you for one year at a time and are renewable, but the premium cost increases year by year. You can choose to switch to a level premium policy to better manage your monthly budget.
Meet a life insurance agent
The best way to spring clean your life insurance is to enlist the help of a professional. Much of how insurance works is in the small print. One of our local agents can advise you on all the new products on the market that can better fit your budget, help you change beneficiaries, help you with all questions of a lifetime or find insurance with higher death benefits.