It’s important to take the time to think about and review your life insurance coverage on an annual basis. As your life changes, so does your need for life insurance. Here are five tips to help you get the most out of your life insurance policy this year.
1. Review Your Life Insurance Coverage
Taking the time to review your life insurance coverage at least once a year is necessary to make sure you still have the coverage you need. You may find that the amount of coverage you have isn’t adequate anymore or that you’re able to find the same amount of coverage at a lower price, so taking the time to compare your options can be extremely beneficial. Our life insurance calculator can help you determine the sufficient amount of coverage for your current situation and needs.
2. Consider Switching From Term Life Insurance to Whole Life Insurance
If your dependents don’t rely on your income anymore or if you think you won’t need your life insurance coverage by the time your term life insurance policy expires, you may consider converting your term life insurance policy into a whole life policy. There are a few benefits to converting your policy, including skipping the medical exam, cash value, and securing lifetime coverage.
3. Review the Cash Value of Your Whole Life Insurance Policy
The cash value of your permanent life insurance policy is likely one of the reasons you purchased your policy in the first place. You’ll want to keep an eye on the cash value of your whole life insurance policy, especially if you have been withdrawing or taking cash value loans out.
4. Talk to a Financial Advisor
A financial advisor can really help position you for future success, whether you’re planning for the future or trying to pay down debt. If the past year has been a stressor on your finances, talking to a financial advisor can help you get back on track and develop a plan to maintain your life insurance coverage as well as achieve your financial goals. If you’re thinking about retirement, a financial advisor can help you figure out the investment strategies that will help maximize your income in the future.
5. Strategize Your Life Insurance By Stacking or Laddering Policies
Stacking your life insurance policies—or laddering—is a great way to make sure you’re only paying for the life insurance coverage you need. Taking the time to understand your needs for life insurance as well as your financial goals can help you tailor your coverage to only pay for what you truly need.
Maximize Your Life Insurance Policy in 2022 with the Help of SelectQuote
Taking the time to review your life insurance policy each year is so important to ensure you’re still getting the most out of your coverage. Whether you’re worried about the cost or the amount of coverage you have, we will take the time to understand your situation to find the right type of life insurance coverage for you and your family.
At SelectQuote, we shop while you save!