Think you have the right life insurance coverage?

If you’re like many people I meet, you have life insurance. Maybe you got it through a past employer. Maybe you bought it from an agent referred by a friend. Maybe you decided you needed coverage when you started a family. If those kids are in school now, you might want to check on your policy.

There are lots of reasons your life insurance might not be right anymore. It doesn’t mean you got ripped off; things change. In fact, in about 65% of the 3,000 cases reviewed by my brokerage general agency each year, there’s a way to improve the policies.

Why? There are many reasons.

  • You’re not an insurance expert. Many times, people don’t have a good understanding of the insurance they purchased. This can happen, for example, when your employer offers insurance as a benefit. You take what is offered and don’t think much about the specifics. You might have a policy that has built significant cash value but doesn’t have a substantial death benefit. It could be time to use that value to purchase a policy that meets your needs better.
  • Time flies, and your goals evolve. Maybe you bought a 20-year term insurance policy when your first child was born. As you near the end of the term, renewing it could be extremely costly. You should consider your options carefully. Do you need another term policy, or should you look at permanent coverage?
  • Markets move, and costs change. My clients are often surprised that the insurance business, like any other, changes over time. You may be able to get the same coverage for lower costs, or maybe better coverage for the same costs. Comparison shopping may also help lower the fees inside your policy, something most people don’t even think about.
  • New products and offers are introduced all the time. If you have life insurance, for example, your family benefits from the value after you’re gone. But if you should become ill, the full cost of long-term care may not be covered under your life insurance policy. A long-term care rider might be an option to consider. These riders help your family manage costs while you’re alive.
  • The rating for your insurance company has changed. Insurance companies are rated based on their financial standing. If you purchased your policy from an A+ rated company, you felt secure that they could pay policyholder claims. But as in any business, ratings can change. If your insurance company is less solvent now, you should consider other options.
  • You bought from an agent who didn’t have many choices to offer. Most insurance agents represent a single company, so buying your policy from them – whether they’re a friend or a referral or someone you researched who had great reviews – means you have few options. And according to a recent study, more than 75% of individuals who buy life insurance never hear from the agent that sold them that policy again. To increase options for clients, our team partners with a General Brokerage Agency. That way, we expand your options to 80+ companies and 1,000+ products.

If you’re curious about whether you have the right life insurance, now is the perfect time to find out. Contact me to discuss your situation.

Jared Kornfeld is a Director of Insurance Solutions at Kaufman Rossin Insurance, an insurance solutions provider.