6 New Year’s Resolutions to Consider for Your Life Insurance Coverage
It’s the time of year when everyone makes their New Year’s resolutions. For many, resolutions usually include setting new financial goals. This could include saving more in your 401k, reducing your debts or making sure you and your loved ones are adequately protected with life insurance. If you are looking at your overall financial picture, it is important to think about adding life insurance to your strategy. If you already have life insurance, it makes sense to take another look at what you have. Here are 6 New Year’s resolutions to consider for your life insurance coverage.
- Get Covered! – Do you have people who rely on you financially? Would your death cause a financial hardship to those you support? If you answered yes to either of these questions, you need to get covered. Life insurance rates have never been lower. A 40 year old male in excellent health can get $1,000,000 of coverage for 20 years for about $55.00 per month. A 40 year old woman in excellent health can get the same amount of coverage for less than $45.00 per month. Leaving your loved ones unprotected if you were to pass away unexpectedly could leave them financially devastated. Wouldn’t you want them to maintain the lifestyle that you created for them?
- Get Healthy – Many of you will make resolutions to get healthier this year. That could mean more exercise, eating better, losing weight or quitting smoking. Anything you do to get healthy will give you the greatest chance at a ‘Preferred’ rate on your life insurance. John Hancock’s Vitality Program even allows you the opportunity to lower your premiums each year and earn rewards for maintaining a healthy lifestyle once you purchase a policy. If you already have coverage at less than a ‘Preferred’ rating, getting healthy could allow you the opportunity to get a new policy at a better rate.
- Review Your Existing Coverage – If you’ve had a major lifestyle change, health change or if your life insurance coverage goals have changed, it might be a good time to look at your existing coverage.
- If you’ve added a child or purchased a larger home, you could need more coverage.
- If you’ve quit smoking, lost a lot of weight or quit participating in dangerous activities, you could qualify for lower rates on a new policy.
- Life insurance products have evolved over time. If you originally purchased a basic term policy, there are policies now that offer living benefits such as chronic illness, critical illness and long-term care riders attached.
- Have you coverage goals changed? As you get older, you could be looking at covering your final expenses or leaving a bequest to grandchildren or a charity. Adding permanent coverage to your strategy could be a smart choice.
A review of your existing coverage should be done periodically to make sure that your current coverage is aligned with your goals.
- Is it Time for a Term Conversion? – You probably purchased a term policy when you were younger and it made financial sense. But your life insurance goals can change over time. As you get older, it might make sense to convert some of your term coverage to permanent coverage. Having some permanent coverage could come in handy to pay final expenses or leave a legacy to loved ones. In most cases, you won’t have to show proof of insurability. In other words, you will not have to take the medical exam again and your permanent coverage rates will be based on your original health rating. This feature is especially important if your health has deteriorated.
- Review Your Beneficiary Designations – Naming your beneficiaries is an important part of the life insurance planning process. You want to make sure your death benefit goes to the right person, don’t you? It is important to update your beneficiaries when certain life events happen such as divorce or when a beneficiary predeceases you. You should also look at coordinating your beneficiary designations with your will or trust.
Resolutions for a Solid Life Insurance Plan – Now that it’s a new year, take the time to look at your life insurance needs and goals. If you don’t have coverage yet, get covered! You are putting your loved ones at risk without proper coverage. If you have coverage, take a look at your current plan to make sure that it meets your needs and goals. We can help you assess your needs and evaluate your current coverage. Give us a call at 888-687-9444 for a free consultation or get a free quote using our quote engine. We will find you the best rates from over 40 of the industry’s leading companies.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
