"Money is only a tool. It will take you wherever you wish, but it will not replace you as a driver."
Ayn Rand, American novelist and philosopher
Indeed, you are the driver and controlling your money means controlling your life.
Life consists of constant change, and controlling your budget can make it easier to cope with the upheavals. Do you take stock of your finances now and then? Like every aspect of your life, life insurance is something you should regularly review to update your policy. Review your life insurance policy periodically to ensure this is the right policy for you and your beneficiaries. You can then assess whether all your needs are covered or if you should look at an additional option. You might well congratulate yourself in a few years for taking the time to review your coverage over the phone with your advisor. This simple review could save you money or even avoid a claim. And if you know someone a little lazy about their finances, now is the time to send them this article to help them consider their life insurance options. So, here are the 14 cases where you should call your advisor to review your insurance policy.
Check the terms of your contract and the renewal date when you sign it, and mark the date on your calendar for next year. Take the time to review your insurance policy and list all your questions and concerns. For example, you can ask yourself and ask your advisor:
- Should I increase the amount of coverage in the event of death?
- Do I need additional options for disability or critical illness?
- Has my health changed?
- Do I need other coverage?
- Are there new plans more adapted to my profile?
Did you just get married? Or have you recently divorced? It is time to check the impact this may have on your coverage amount.
Also, you should check who is the beneficiary of your insurance policy. Have you made the change if, after a divorce, you remarried? An insurance policy has legal value, so your spouse will not be able to do anything or claim anything if the benefit is paid to the wrong person.
Also, the amount of your coverage could change. Or your spouse could benefit from an attractive rate in the event of a joint policy. So, as soon as your marital status changes, review your insurance policy, and call your advisor to talk about it.
Maybe you chose a guaranteed issue plan because you have a pre-existing condition. But it would help if you regularly kept an eye on medical advances in the treatment of your disease. It's easier today to handle multiple sclerosis or cancer thanks to the progress in medical treatments for example. Better treatments can lower your premiums.
You may have accepted credit card debt, taken out a loan for your car, or even a mortgage. Any new financial commitment should result in a reassessment of the amount of your coverage. So take a look at the list of debts for which you are responsible. In the event of death, could your plan’s coverage amount be sufficient for everything?
A birth, the departure of one of your children for university, or even taking charge of a sick parent changes your family situation. Your coverage amount and your plan should reflect the number of people you have under your responsibility.
And by the way, did you know that you can take out life insurance on behalf of your children and grandchildren?
Have you changed jobs? Your employer may have offered you life insurance included in your benefits. When you quit your job, you lost this coverage. So now is an excellent time to shop for personal life insurance that will cover you in addition to group insurance. Collective insurance is not always personalized and sufficient.
Likewise, if you are starting a business, life insurance is necessary so that your business passes to the right partner in the event of your death.
Improving your health should be one of your highest priorities. And when you've fixed a problem like quitting cigarettes or losing weight, your insurer could reward you for your efforts by lowering your premiums. So take care of your health now to save money when updating your coverage.
For example, buying a home is one of the most significant financial investments you could make, and you absolutely need coverage for that debt. But once you’ve fully paid it off, you can request a review of your insurance policy to change your contract since you have one less financial commitment.
Like when you change jobs, you lose group life insurance when you retire. But just because you are retired doesn't mean your life ends. On the contrary, you might want to embark on a personal project or even a business you kept aside all your career: term life insurance would then be the most suitable. Or, you might need more insurance to supplement your spouse's retirement income.
A mortgage can be very costly for your family in the event of death: they could lose the house and have to move out. Life insurance will help your family keep the house and pay off any other debts you may have. In these cases, consider taking out joint first-to-die coverage. This plan is less expensive than buying two separate plans and allows the surviving spouse to receive a tax-free lump sum.
Did you get a promotion? Is your business running even better than you expected? Or have you received an inheritance? Maybe you want to improve your standard of living by buying a new car. But perhaps it makes more sense to purchase additional protection to leave more money for your beneficiaries. Or invest these funds in a participating life insurance plan.
Now you know the 11 moments in your life when you should review your insurance policy. It's never too late to do this update with your advisor. Every change in your life should prompt you to reconsider your financial planning and how it will impact your family.
To discuss your contract and the possibility of changing your policy, we invite you to complete the form below to contact us. Our advisor will reach out and help you with your life insurance needs.