Review Your Coverage During National Life Insurance Awareness Month
This article originally appeared here.
As you know, the Federated® tagline is: It’s Our Business to Protect Yours®. Part of that commitment is to make sure that our clients know the options available to protect not only their business, but also their family, in the event of an unexpected loss. A simple way to do this is with life insurance. September is National Life Insurance Awareness Month, which provides a great reminder about this important tool, and the impact that life insurance can have on a family or business after the death of a loved one, key person, or owner.
Even if you already have life insurance, it’s a good idea to take a look at your current coverage periodically to see if any adjustments might need to be made for a variety of reasons:
- Do you have a term policy that is reaching the end of the level term period? If so, your policy may have a term conversion provision that will allow you to continue coverage while avoiding the significant annual increase in premiums in future years, or an end to your coverage altogether.
- If you have a permanent policy, like whole or universal life, do you know how your policy is doing? Lower interest rates or changes in premiums paid over time can result in a policy being in danger of lapsing sooner than originally projected. Be sure to review your annual policyholder statement each year. If your policy is not performing as expected, a discussion of options to improve policy performance with your marketing representative may be in order to keep you from inadvertently losing coverage. Increasing the premium by even a small amount may have a positive impact on the duration of the policy.
- Have you recently had a major change in your life? Events such as the birth of a child or grandchild; marriage; divorce; or death of a spouse, business partner, or other family member are just a few of the changes that may necessitate a change in your policy’s primary and/or contingent beneficiary designation.
- Do you have policies that you don’t understand or question whether you should continue them? Ask your marketing representative for an audit of your existing policies. They can provide general information about how your policies work and what options may be available if you want to make a change.
Life Insurance Awareness Month is a great reminder to review your existing coverage to make sure it is positioned to meet the needs of your family and/or business. If you have questions concerning your coverage, or are looking to obtain coverage, talk to your local marketing representative to discuss available options.
This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.
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