Here are some common problems:
- Among-st older permanent policies, many are underperforming and are severely underfunded. If action is not taken, the policy will eventually lapse.
- The policyholder was a smoker when the policy was issued but has since quit completely. The premiums still reflect the smoker classification, which can be double in many instances!
- Many are paying high premiums for a permanent policy that is not accumulating cash value at a desirable rate.
- Many have experienced life changing events that have drastically changed their insurance needs from the time that they purchased their policy
- Many have very short term policies such as a 10 year term. They are almost sure to outlive the policy but will pay a much higher rate at the end of the term to extend it. In some cases a 10 year term is a good fit but in most cases a 20-30 year term is much more suitable.
- Has my policy been reviewed in the past 2 years?
- How many years is my term policy for and when will the term end?
- Am I content with the cash accumulation performance of my permanent policy?
- Has my life situation changed significantly since I began my policy?
- Have I spoken with my agent about the possibility of converting my term policy to a permanent policy?
- Have I learned about how a life insurance policy can be one of the most effective vehicles for a retirement plan? If you are paying into a 401k or similar plan, you need to pay attention to this one!!
Marc & Ed