Life insurance often seems like something you can set and forget, but the reality is, you should keep a close eye on your policy to ensure you’re always getting the most out of it. Life insurance policy management sounds intimidating, but the potential downfalls of not doing so aren’t worth avoiding. This blog includes the three steps to managing your term life insurance policy, how you can manage a whole life insurance policy and how SelectQuote can help.
Three Steps to Manage Your Life Insurance Policy
Life insurance is one of the easiest ways to ensure your loved ones are protected if something were to happen to you. And one of the easiest ways to make sure your policy is in good standing is by properly maintaining it. Figuring out how to manage your life insurance policy doesn’t have to be intimidating. Here are three easy steps to life insurance policy management.
1. Review Your Life Insurance Policy Regularly
The first step in managing your life insurance policy is to review your coverage regularly. By doing so, you’ll be able to spot abnormalities or issues as soon as they arise which can often save you both time and money in the long run. There’s also a chance you can find greater coverage at the same price or the same amount of coverage at a more affordable price while re-shopping, so it’s good to always know your options.
If you’ve elected to participate in group term life insurance through your employer, your employee benefits open enrollment period is always a great time to examine your coverage. Because group life insurance is usually less expensive—though less comprehensive—than other forms of life insurance, it can be a good short-term supplement to a long-term policy.
2. Adjust Your Life Insurance Policy if Needed
There are a number of instances that would lead you to consider adjusting your life insurance policy. Whether you got married, started a business, bought a new house or retired, it’s always important to re-evaluate how much life insurance coverage you need, who depends on your financial support and what your immediate and future financial needs are.
If you have group life insurance coverage through work, you should be aware that most policies tend to offer only 1-2x your annual salary. Financial experts commonly recommend that your policy provide death benefits that total as much as 10x your annual salary. While group life insurance can be a great, affordable supplement, it’s no replacement for a robust individual term life policy.
3. Update and Inform Your Policy Beneficiaires
It’s likely that your life insurance beneficiary is one of the reasons you bought coverage in the first place, so it’s important to keep them informed and updated as much as possible. It’s important to review your beneficiaries every couple of years, especially following major life changes, as you don’t want your beneficiaries to have any struggles when the policy payout comes.
How to Manage Your Whole Life Insurance Policy
A whole life insurance policy will likely require more attention and maintenance than other traditional policies as this permanent policy lasts for as long as you live. The primary reason for this is the cash value that accompanies a whole policy. As your premiums accrue, and at a specific time set by your insurance carrier, you can borrow against your whole life insurance policy’s cash value.
Let SelectQuote Answer Your Life Insurance Policy Management Questions
Whether you have questions on how to manage your life insurance policy or are interested in adjusting your current coverage, SelectQuote can help. We work with some of the most trusted life insurance companies in the nation to help you find the right coverage with the right carrier at the right price for you in just minutes.