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Life Insurance Awareness Month
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September is Life Insurance Awareness month and this is a great time to review your insurance needs. Life insurance is something we often buy while we are young and tend to forget why we purchased the policy. To help you with your insurance review, I have laid out a few key points and recommendations you may want to think about:
- The first step is to locate your policy. While this seems mundane, it could be more difficult than you think since you probably haven't seen it in a while. The reason I emphasize this is; if you can't easily find your policy then how hard will it be for your beneficiaries to find the policy if something was to happen? If it is lost, the insurance company can always print you a new one, but I would recommend putting your policy somewhere that is easily accessible and letting your beneficiaries know where it is located.
- Once you have located the policy, review what you have and try to remember why you purchased the policy originally. Most people bought a policy when they were younger which means it was probably purchased to cover their debts and replace a certain amount of income. From the time you purchased your policy a lot has probably changed and there is a good chance your insurance needs have changed as well. This is why reevaluating your insurance needs may be necessary. Purchasing a new home, expanding your practice, an addition to your family or a substantial change in income are all good reasons to adjust your insurance policy.
- Finally, knowing what riders are on your policy and understand how they can be utilized is very important. Most term policies have convertibility options which could allow you to convert a portion of your policy into a permanent one without going through medical underwriting. If you are closer to your retirement age then you probably don't have the need for a term policy as much as you did 20 years ago. This may be a good time to think about converting to a permanent policy to cover final expenses, charitable gift planning or a legacy to your grandchildren.
Reviewing your policies and understanding what you currently have can be overwhelming, but it is important to do an insurance review annually to make sure your policies keep up with your current needs. The insurance specialists at Withers Crest would be happy to help you understand your policies and answer any questions. To contact one of them either call or fill out a request form at the below link.
Phone: 843-732-3304
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