Death is not a fun topic to think or talk about, which unfortunately contributes to life insurance being one of the most neglected areas of any financial portfolio. The bottom line is this: if there is anyone in your life that relies on you financially, then you need life insurance. Having some form of coverage in place is the first step, but actively managing how much and what type of coverage you have as your needs evolve takes continued effort. Here are a few situations in which you may want to review your current coverage:
You are unsure of how much coverage you have.
Do not feel embarrassed if this sounds like you—we would be happy to help review any coverage you already have in place, free of charge.
You have gone through or are approaching a major life event.
It may be beneficial for you to consider how life events can change how much coverage you should have; marriage, buying a house, having children, taking on your parents as dependents, personal debt, buying into a practice, retiring, having a child graduate college.
These are only a few examples—if you have run into any situation that has shifted someone’s financial dependence on you since the last time you reviewed your life insurance, then you may want to consider how that dependence affects how much coverage you want.
Your current coverage was not implemented as part of a comprehensive financial plan.
When starting your policy, how did you decide on the amount of coverage? A good adviser will also take into account future personal and business plans, retirement contributions, debt management, and the client’s risk tolerance when providing advice.
Your term coverage is expiring soon.
Term life insurance provides temporary coverage, usually between 10-30 years. If you own term insurance, the coverage will eventually run out due to the fixed length of the policy—it is important to review your coverage before this time comes. Is your current policy convertible? Does a permanent policy better meet your needs?
You are considering long term care coverage.
Nearly 70% of today’s 65 year olds will require some form of long term care service in their remaining years, with 20% requiring it for more than 5 years.[1] With the average cost of a private nursing home room at $9,346/month in Wisconsin, you can see how this may be something that you would want to insure against.[2]
If you would like to talk with an experienced life insurance advisor, reach out to Professional Insurance Programs at (800) 637-4676, info@profinsprog.com, or visit us online at www.insuranceformembers.com.
[1] U.S. Department of Health and Human Services “How Much Care Will You Need?” https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.htm 2017
[2] Genworth “Cost of Care Survey 2018” https://www.genworth.com/aging-and-you/finances/cost-of-care.html 2018