repairing or buying new

Why Fixing Existing Life Insurance Policies May Be More Important Than Buying New Ones

As National Life Insurance Awareness Month comes to an end, we’ve seen an upsurge of articles relating to what life insurance is, why you should have it, and what type of policy is best. One common theme, however, is that all this content is centered around the acquisition of a new policy.

Now, getting a new policy isn’t a bad thing, but if I was in charge of National Life Insurance Awareness Month, I would want to make the point that current policies are often of even more value than acquiring new ones.

Here’s why:

Problem

70% of the policies we review have unforeseen issues. (Many are easy to fix.) Existing life insurance policies are ignored at our own peril. All this focus on acquiring new policies obscures the importance of existing policies. It’s then easy for people to become complacent-assuming they already have it covered and don’t need to take any additional steps.

This couldn’t be further than the truth. While it’s important for the uninsured to get covered, it’s even more important to overcome that complacency and get existing policies reviewed. There’s a Pandora’s Box worth of problems that can cause the beneficiary to be disappointed. For more detail, click here.

It’s very common to find the beneficiary designation isn’t what it could be, or that the premiums must go up for them to have coverage continue as long as it’s really needed.

Solution

It’s not difficult to do, but getting your clients’ life insurance policies reviewed isn’t that much different than making sure their corporate minutes are up to date. In both those cases, an ounce of prevention can create a huge sigh of relief somewhere in the future.

A policy review can spot holes in coverage that would otherwise go undetected until it is too late. (As a crew member on a submarine, I learned first-hand the importance of fixing an issue before it happens.)

Outcome

A well-managed life insurance policy provides value year after year. A good policy checkup provides confidence the value will continue as it’s supposed to.

Our team makes it easy for you and your clients to make informed decisions on all your life insurance needs. At Stratus Financial Partners, we’re making the world a better place, one policy at a time.

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