Broker Check


February 08, 2017

Life insurance is a foundational component for many financial plan& However, over the course of time, much can change. Life happens, goals change, and needs change. Whether you’ve recently welcomed a new baby, gotten married, retired, or taken a new job, reviewing your current life insurance policies is an important part of your financial well-being. Unfortunately, many people neglect to review and revise their insurance as changes arise. One change that often goes overlooked is the change that is constantly taking place in the life insurance industry. Products change regularly, and staying up to date with the types of policies that are available and making sure that you have suitable coverage is a task that should not be ignored. This is why we offer the “In-Force Life Insurance Audit” as a part of our comprehensive plan, making sure that your policy meets your needs in a cost efficient manner is the goal of the audit. As a part of a comprehensive financial plan, it is prudent to conduct an in-force life insurance audit at least once every two years.

What the Audit Consists of:

  1. Identify all existing life insurance policies.
  2. Clarify the goals and intentions of each policy, which may be:
    • Supplemental retirement income
    • Temporary insurance coverage to protect in case of premature death – Pay mortgage and/or other debts – Replace income – Pay for children/grandchildren’s college – Business insurance
    • Permanent insurance coverage – Help pay potential estate taxes – Help create more of a “legacy” – Income replacement due to the loss or reduction of pension, social security, or annuity income.
  3. Request in-force life insurance illustrations for all current policies.
  4. Analysis and review of in-force illustrations to ensure they meet intended goals in the most cost-efficient manner.

Potential outcomes of an In-Force Life Insurance Audit:

  • Maintain Status quo – It is determined that the policy meets the needs and goals and is cost efficient.
  • Replacement option 1- The policy meets the intended needs and goals, but the goals and needs can be met in a more economical manner.
  • Replacement option 2 – The policy does not meet the intended needs and goals, and a new policy that does will be applied for.
  • Replacement option 3 – The policy is no longer needed and may wish to be converted into an income stream or other tax-deferred asset for later use.