Your financial picture may be different today than it was when you purchased your insurance.
Think about what life looked like then. Maybe you were building a career, buying a home, raising young children, or getting a business off the ground.
Fast-forward five, ten, or twenty years, and a lot can change. Your income may be higher. Your family may have grown. Your business may be more valuable. Retirement could be around the corner. And the people who depend on you may need something entirely different.
When Life Changes, Your Coverage Should Keep Up
Insurance shouldn’t be something you buy and forget. It should remain connected to your financial plan and be periodically reviewed to ensure it is still doing the job you intended it to do.
Start With One Simple Question
Why did you originally purchase the coverage, and does that purpose still exist today?
Then Ask Yourself:
1. If something happened to you tomorrow, would your family have enough?
Consider more than just paying off debt. Think about income replacement, education funding, mortgages and other liabilities, retirement funding for a surviving spouse, and the long-term needs of the people who depend on you.
2. Are you safeguarding your income and assets?
Your ability to earn an income may be one of your most valuable assets. Disability and long-term care needs can affect not only your income, but also the retirement assets and financial independence you’ve spent years building.
3. Does your coverage still support your legacy and estate plan?
As wealth grows, insurance can take on a different role, including retirement planning, providing liquidity, helping equalize inheritances, supporting business succession, fulfilling charitable intentions, and creating capital when it is needed most.
When Is It Time for a Review?
Consider a review of your policy if:
- Your income has increased, or your net worth has grown significantly.
- You got married, divorced, remarried, or you welcomed a child or grandchild.
- Your children are now grown and financially independent.
- You bought a home, paid off a mortgage, or took on significant debt.
- You started, bought, sold, or grew a business, or your ownership stake is more valuable.
- You have business partners or key employees whose loss could affect the business.
- You are approaching retirement.
- Your estate plan or legacy goals changed, including the creation or revision of a trust.
- You are thinking about long-term care costs and their potential impact on your assets.
- Your health has changed in a way that may affect your existing coverage or future options.
- Your beneficiaries or policy ownership may no longer reflect your wishes.
- Your policy hasn’t been reviewed in five years or more.
- You are not sure what you own, why you own it, or how it fits into your financial plan.
And don’t overlook the policy itself. A review should determine whether your coverage remains adequate, whether the policy is performing as intended, and whether it is expected to remain in force for the desired period.
The Goal Isn’t More Insurance. It’s the Right Insurance.
A review may show that you need more coverage. Or less. An existing policy may need to be adjusted. And sometimes, the best outcome is knowing that what you already have is still doing exactly what you need it to do.
The Important Thing is Knowing.
If it’s been a while since you’ve reviewed your insurance, let’s make sure the coverage you have still fits the life you have today. Simply contact us to schedule a conversation.