Brand Shank ChFC

Chartered Financial Consultant

 

 

Call 727-251-6000

 

brand@brandshank.net

 

 

 

 

Helping You Make Informed Decisions

Life Insurance

What Is a Life Insurance Review?

 

A life insurance review is an opportunity for you to review your existing coverage with respect to your current needs and goals. The process facilitates an examination of how your needs have changed and how your life insurance policies have performed since the coverage was purchased. It should include a review of policy ownership, beneficiaries, riders and any sub-account allocations if applicable.


It is prudent to recalculate your current insurance needs at this time to help ensure your existing coverage is still appropriate Why Is a Life Insurance Review Important?

Although simple in concept, life insurance policies can be quite complex financial instruments. Just like the other assets within your portfolio, life insurance needs to be monitored to be certain that the coverage is designed to achieve the desired results. Many factors influence the affordability, reliability and long-term potential to achieve the desired results for your policy. Reviewing all existing coverage with your financial professional every one to two years is the best way to help ensure your coverage  and insurance continues to meet your evolving goals in a cost effective manner.

 

Several examples of factors to review include:

 

  1. Beneficiary designations particularly if you have  had additional children or have been married or divorced.
  2. Lifestyle changes career changes or a new home purchase may alter your family
  3. Changes in tax law may make changes in the policy ownership, funding or structuring more or less desirable to achieve your future goals.
  4. Personal health changes factors such as quitting smoking or losing weight may actually reduce future premiums. Alternatively, as we age certain other medical conditions may arise which may make new underwriting difficult. Finally, industry experience with existing conditions may now be treated differently due to medical advances or the carrier
  5. Illustrated rates of return the initial illustration is essentially an estimate of how the policy will perform under certain conditions. If rates have declined or risen substantially since that time, the illustration will no longer be accurate. Rate changes can affect the number of premiums which must be paid, projected cash value or even the potential for the policy to lapse. Rate changes include crediting rates, variable universal life investment account performance and dividends. You should obtain an inforce ledger from your existing carriers to review the potential effect of any rate changes during this process.

What kind of life insurance should I get? Term or Whole Life?

 

In short, get term if the budget is tight or your need for it is short term. Whole life premiums are higher but has a lower net cost in the long run and is the only practical way to keep coverage until you die, regardless of how long you live. It's best to look at both and compare.