Why is an insurance policy review important?
Life insurance is often overlooked, and with ongoing changes in the insurance market, coverage, costs, and needs can shift over time. As your business evolves and new solutions become available, a regular review helps keep your policy aligned with your goals and ensures it remains the best fit.
What does it entail?
An insurance policy review is performed by an insurance agent. It involves confirming key details such as ownership, beneficiaries, named insureds, and covered assets while gathering current policy values, coverage limits, and endorsements.
It includes ordering in-force illustrations to assess performance by reviewing past results and projecting future outcomes, which may differ from original expectations. The review also analyzes performance against current and alternative premium options, evaluates policy features and benefits, and examines the financial strength of the carrier. Based on this analysis, representatives may provide written recommendations and suggest alternative solutions tailored to the client’s needs.
When should an insurance policy be reviewed?
Property and casualty insurance policies should be reviewed annually to determine if coverage, limits, and pricing remain appropriate. In addition, any life insurance policy that is more than five years old or has not been reviewed within the last two years should be reassessed.
Reviews are also recommended when significant life or financial changes occur, including:
- Changes in family structure (marriage, divorce, birth of a child)
- Buying or selling a home
- Children going to college
- Changes in health
- Updates to an estate plan
- Purchase or sale of a business
- Creating a trust or LLC
- Shifts in the balance sheet or liquidity
- Increased investment in valuable collections
What is needed?
- Policy information
- Life insurance statements and ownership information (with signed authorization)
- Property and casualty declarations pages and renewal dates
