Life Insurance Needs Review

Throughout our lives, we are constantly reminded of the importance of having life insurance to pass on to our loved ones in order to replace lost income when we die.  We would not argue with that philosophy at all.  After all, isn't that is the main reason that we buy it?  But as time goes on, we forget about it,  This could be a big mistake for our families, because as time passes, our lives change and we might not have the right amount of insurance coverage to protect our family.  For example, a $200,000 death benefit paid in 2004, would have the same buying power as a $110,000 death benefit in 1984.1  Therefore, if you had purchased a life policy 20 years ago, the current value of the death benefit would not have as much buying power, looking at today's prices, as when purchased in 1984.  You might possibly need to purchase additional coverage to make up for the difference in value, and bridge the gap to make up for the effects of inflation on the dollar.

Ask yourself the following questions to assess whether your current life insurance coverage is sufficient for those needs.

  • Have there been any recent changes in your family? Marriage? Births? Death? Divorces?
  • Has there been any change in your employment and group insurance coverage?
  • Has your income changed?  Increased? Decreased?
  • Are you planning to fund a child's college education?
  • Have you had any changes in your health that could affect the cost of your current policies?
  • Do you have any term life insurance policies that are nearing expiration?
  • Do you have whole life insurance?  Have you determined the cash value?

As life changes, your life insurance needs change too.  Reviewing your current life insurance policies is something that you owe to yourself and to your family.  We will be happy to assist you and to answer any questions that you may have.  Please contact us to schedule your FREE consultation with one of our Professional Advisors to discuss the role of life insurance in your financial portfolio.

1 Bureau of Labor Statistics, CPI Calculator