Jay: Jay Scheiner 
CEO, ASG
Life insurance isn’t a one-time purchase. Just like other aspects of your clients’ financial well-being, their life insurance policies should be reviewed regularly to ensure they have the right coverage to protect their loved ones as their needs change.
By conducting an annual review, you can help your clients stay informed about their options and make any necessary adjustments to their policies. Let’s explore some of the circumstances that may necessitate a new life insurance policy and learn how you can assist your clients in navigating these changes.
The Importance of an Annual Review
Life is constantly changing, and so are your clients’ life insurance needs. By conducting an annual review, you can help your clients stay on top of their coverage and make any necessary adjustments. Here are some key reasons why an annual review is essential:
- Marriage or Divorce: When your clients get married or divorced, their life insurance needs may change. They may need to add or remove beneficiaries, update their coverage amount, or consider a new policy altogether.
- Buying a House or Paying off a Mortgage: Purchasing a new home or paying off a mortgage is a significant financial milestone. It’s important to review your clients’ life insurance coverage to ensure it’s sufficient to cover their mortgage or any other outstanding debts.
- Retirement: As your clients approach retirement, their life insurance needs may change. They may no longer need as much coverage if their financial obligations have decreased. However, they may still want to maintain some coverage to provide for their loved ones or cover final expenses.
- Starting a Business: If your clients are starting a new business, they may need to consider additional life insurance coverage to protect their business and provide for their family in case of their untimely death.
- Changes in Health: Changes in health can significantly impact life insurance coverage. If your clients have experienced a decline in health, they may need to review their coverage and consider additional options. On the other hand, if their health has improved, they may be eligible for better rates or coverage.
8 Steps to Conduct an Annual Review
Conducting an annual review doesn’t have to be complicated. Here are some steps you can take to help your clients navigate the process:
- Schedule a Meeting: Reach out to your clients and schedule a meeting to discuss their life insurance coverage. This can be done in person, over the phone, or through a virtual meeting.
- Gather Information: Ask your clients to gather any relevant documents, such as their current life insurance policy, beneficiary information, and any documented changes in their financial situation.
- Assess Their Needs: Review your clients’ current coverage and assess whether it still meets their insurance needs. Consider factors such as changes in income, financial obligations, and future goals.
- Explore Options: If necessary, explore different life insurance options that may better suit your clients’ current situation. This could include adjusting coverage amounts, adding riders, or considering different policy types.
- Review Beneficiaries: Ensure that your clients’ beneficiaries are up to date and reflect their current wishes. This is especially important after major life events likr marriage, divorce, or the birth of a child.
- Consider Additional Coverage: If your clients’ circumstances have changed significantly, such as starting a business or experiencing a decline in health, discuss the possibility of additional coverage to address these new needs.
- Provide Recommendations: Based on your assessment, provide your clients with recommendations for any necessary changes to their life insurance coverage. Explain the benefits and costs associated with each option to help them make an informed decision.
- Follow Up: After the review, follow up with your clients to ensure they understand the recommended changes and assist them in implementing any necessary updates to their policies.
The Takeaways
- Life insurance needs can change throughout your client’s life, so it’s important to review their policy at least once a year to ensure their coverage still fits their insurance needs.
- There are a number of reasons why your clients might need a new life insurance policy, such as getting married, buying a house, or starting a business.
- Conducting an annual review of life insurance coverage can help build trust and strengthen customer relationships by demonstrating your commitment to your client’s best interests.
Putting It Into Practice
By conducting a thorough annual review of their life insurance coverage, you can demonstrate your commitment to your clients’ financial well-being and help them stay protected as their lives evolve. Remember to document the review process and keep detailed records of any changes made to your clients’ policies.