The Importance of a Life Insurance Audit
Is it time to review your policy?
Life insurance is hard. It’s hard to know if you have the right kind. It’s hard to know if you have enough. And it’s hard to know the importance of a Life Insurance Audit.
The insurance companies have made it even harder by coming up with bewildering names: whole life
, term life
, universal life
. Some life insurance policies have a cash value, while others do not. Some invest that cash value in the stock market, while others pay a fixed rate of interest. Some insurance policies combine all of these ideas.
A recent study by life insurance advocacy group LIMRA discovered that 80% of Americans overestimate the cost of affordable term life insurance – especially millennials, some of whom think the premiums are 200% higher than they really are, that is because of the fact that they do not understand the importance of a Life Insurance Audit. How much would a healthy 30-year-old pay per year to keep up a 20-year, $250,000 term life policy? When LIMRA posed that question to consumers, the median response was $400. In reality, the annual premiums are commonly less than $200.
GET QUICK COVERAGE WITH LOCAL LIFE PRO
This is why it is important for you to sit down annually with an insurance professional to review how your policy works and how it will help you to protect your family.