Guest post by Doug Lerner, President, Lerner Group
There are many important reasons to review your term life insurance policy. Here are the top seven.
- Are you overpaying? Let’s face it, we are experiencing extreme economic volatility and many people are looking to cut costs any way possible. You may be able to save some money on premiums and extend the term period a few more years. Carrier pricing is extremely competitive right now, which makes it the right time to see if you can improve your situation.
- Did you buy your policy from a captive agent? There are many agents who work for a single carrier and may only offer that carrier’s products (examples are All State, State Farm and Northwestern Mutual). There are many more carriers available to an independent agent, which would allow you access to more competitively-priced products.
- Did you buy a policy through an internet website? Many individuals think that purchasing a policy online is the easiest and most effective way. Unfortunately, what often happens is the policy is not shopped around to multiple carriers, and the client ends up paying more for a policy. Because each carrier has different health guidelines, it is vital to make sure the appropriate carrier is chosen. A policy purchased online should definitely be reviewed to make sure it is the right choice. There is no cost associated with the use of an agent, so you might as well utilize their services.
- Has your family situation changed? If you’ve recently gotten married or had a child, your need for life insurance may have changed. It is often less expensive to buy a new term policy for a larger amount than to supplement your old policy.
- Have you bought a house? You may have had enough coverage to support a family, but the added expenses a house brings may have increased your needs.
- Have you had a positive change in health? If you have stopped smoking, lost weight, or lowered your blood pressure or cholesterol, you may be able to qualify for a better health rating and lower premium. Life insurance carriers have loosened their underwriting guidelines, especially involving family history and medically controlled health conditions.
- Is your current term policy expiring soon? You may be approaching the end of the guaranteed level term period. If you still have a need for coverage, it may make more sense to apply now than to wait until it expires and be subject to substantially higher premiums.