How important are insurance checkups
Insurance is not something you would like to think about in your free time — unless of course you work in the business. As for the rest, most people generally tend to think about them only when forced to, like the time when they come up for renewal. How you update your life insurance depends on what type of policy you have. For term life, do a quick comparison of premiums to see if yours are still competitive, especially if your insurer raises them more than you expected.
Now, with term life policies going dime a dozen, you really don’t need to stick with an insurer who charges you the skies for your term life insurance. All you need to do is make a quick check of the scene and find the insurer who will give you the best terms. If you want to check multiple insurers and want your quotes in real time, I’d suggest you search for your insurers online.
For whole life, get rid of riders you no longer need. Pay off any policy loans that are earning less than the interest you are paying on them. If you find you don’t need as much coverage as you’re paying for, ask your insurer if you can reduce the face amount — known as a partial surrender — but watch out for extra fees.
And don’t cash in a policy without considering a 1035 tax-free exchange. That will let you transfer your money to another insurance policy or to an annuity and continue to defer taxes on any gains made within the policy.
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