Home > Magazine > Moneywise > The Importance of a Life Insurance Audit

 

The Importance of a Life Insurance Audit

Provided by Rajesh Jyotishi Email Provided by Rajesh Jyotishi
March 2018
The Importance of a Life Insurance Audit

 

Is it time to review your policy?

Life insurance is hard. It’s hard to know if you have the right kind. It’s hard to know if you have enough. And it’s hard to know if you need any at all.

The insurance companies have made it even harder by coming up with bewildering names: whole life, term life, universal life. Some life insurance policies have a cash value, while others do not. Some invest that cash value in the stock market, while others pay a fixed rate of interest. Some insurance policies combine all of these ideas.

A recent study by life insurance advocacy group LIMRA discovered that 80% of Americans overestimate the cost of affordable term life insurance—especially millennials, some of whom think the premiums are 200% higher than they really are. How much would a healthy 30-year-old pay per year to keep up a 20-year, $250,000 term life policy? When LIMRA posed that question to consumers, the median response was $400. In reality, the annual premiums are commonly less than $200.1,2

This is why it is important for you to sit down annually with an insurance professional to review how your policy works and how it will help you to protect your family.

When you’re young, a certain type of policy is needed. As you raise a family and take on more responsibilities, your needs change again. At some point, when the nest is empty or other life changes occur, you may not need life insurance at all—or alternately, you may desperately need it to protect your estate for your heirs.

Reviewing your life insurance policies is one way to make sure you have the coverage that is right for you and your family now—not when you bought it.

When is the last time you thought about your life insurance? Is it time to take another look?

This material was prepared by Marketing Pro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate; however, we make no representation as to its completeness or accuracy. Please note: investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.
1. blog.intelliquote.com/the-way-most-people-think-about-life-insurance-rates-is-broken [4/25/16]
2. nerdwallet.com/blog/insurance/new-rules-mean-lower-life-insurance-rates/ [3/6/17]


Moneywise (05_17) (1.5) FINAL-page-1.jpg

 


Enjoyed reading Khabar magazine? Subscribe to Khabar and get a full digital copy of this Indian-American community magazine.


  • Add to Twitter
  • Add to Facebook
  • Add to Technorati
  • Add to Slashdot
  • Add to Stumbleupon
  • Add to Furl
  • Add to Blinklist
  • Add to Delicious
  • Add to Newsvine
  • Add to Reddit
  • Add to Digg
  • Add to Fark
blog comments powered by Disqus

Back to articles

 

DIGITAL ISSUE

09_18_Cover_Generation-1.5.jpg
 

 

eKhabar

Sign up for our weekly newsletter
eKhabar

Click here    

 

Alpharetta-CVB-Ad_Khabar-Banner-2x2_09-2018.jpg

Krishnan Co WebBanner.jpg

SERVITIX.gif

DineshMehta-CPA-Banner-0813.jpg  

Raj&Patel-CPA-Web-Banner.jpg 

Prime Travels.com_new banner 5.10.18.jpg

SDK small banner 7-16.jpg