Investments
2008-08-01 09:35:00
Life insurance primer
I bought some life insurance policies many years ago and the agents who sold them to me are nowhere to be found, should my policies be reviewed? Where can I go for this?
It is a common story that I hear from many clients. They bought life insurance a long time ago from an agent or agents that are no longer in the business and the owners of the policies don’t know where to turn for help. If that’s the case, you don’t need your old agent to help you. Many advisors that offer life insurance are independent and should be able to help you.
If you bought life insurance more than ten to fifteen years ago you should have your policies reviewed. Changes in assumptions insurers use to fix insurance rates have caused the cost of life insurance to go down. If you are paying premiums on a policy you bought more than ten years ago, you might be able to get a better rate. If your health has improved, for example you quit smoking, you should look into replacing old policies. Medical advances and new understanding of old diseases has led to changes in insurers’ underwriting practices.
Another reason to review your life insurance is that, over time, your needs change. The reason you bought insurance ten years ago may no longer exist. On the other hand, something may have happened since then to cause you to need more coverage. Take some time to assess your current situation and decide whether your current coverage is meeting your needs.
Finally, insurance products change. In addition to reduced cost, insurance companies are frequently modifying the features and benefits of policies to meet the perceived needs of the market. The policy you have may not be as attractive as the ones insurers are offering today.
Long Term Care Update: The state of Kansas has initiated a Long –Term Care Partnership program that allows purchasers of qualified Long-Term Care policies to protect assets, dollar for dollar, from the Medicaid eligibility spend down requirements. Every dollar paid from a “Partnership Policy” shields the same amount of your assets that you can spend or pass on to your heirs even if your long term care benefits are exhausted. The policies must meet requirements set by the state to qualify.
