You purchased your Limited-Term Life Insurance Policy to do a certain job, to provide protection for a certain period, to protect loved ones or business associates or a charity; possibly to secure a business line of credit, etc.
But now several years have passed, and you are not as clear on your options as you once were.
Some clients tell us they thought there would be a return of premium (and there is none), or they thought the policy would cover them for life (and it doesn’t)
Whether you purchased your policy through our firm or not, we can help.
We will outline your options and alternatives so you don’t waste and more money on a term life policy that may no longer be appropriate for any number of reasons. It may simply be too small, too short-term, or simply out-of-date for your needs. We will outline your options to secure the protection you desire.
These are just some of the potential options we can analyze and discuss with you (and there may be more):
- Continue the policy as-is until it expires ( it will either expire or become too expensive to maintain in 99% of cases)
- Reduce the policy to a more appropriate amount
- Increase the policy to a more appropriate amount (or replace it with a new policy with a larger death benefit. New medical evidence may be required)
- Convert* the existing policy to a permanent form (whole life, limited-payment life, universal or other) offered by the current carrier
- Convert the existing policy to a permanent form offered by a different, more competitive carrier (with or without new medical evidence)
- Convert part of the existing policy to a permanent form and cancel the remainder
- Convert the policy to a single payment paid-up policy for life
- Shop the market for better coverage, better rates, better contractual terms (new medical exams may be required)
- Assign the policy to a church, charity, community foundation or trust and potentially obtain a tax deduction
- Assign the policy to a family member to create a legacy or inheritance for loved ones.
- Change the payor (i.e. to your children or another person) to accommodate budget or increasing living expenses after retirement, and still preserve the legacy value.
- We may be able to secure a new or replacement policy for a longer term of years that may be more appropriate for your circumstances.
This is what we will provide you:
- Summary A complete written, understandable Summary of all your coverage that you can share with your family, heirs and estate representatives.
- Analysis An analysis demonstrating how long your policies will last under best and worst conditions (we will contact your carrier with your written permission)
- Recommendation A written recommendation with suggestions on which policies are sufficient for your needs, which policies are in need of revision; and which policies are in danger of expiration or implosion – and what we advise to make corrections in all areas.
Written by Joe Pantozzi, Alpha Omega Wealth
Read the full blog here: http://www.alphaomegawest.com/your-term-life-insurance-policy/#more-8017
* “Conversion”is often a contractual right. In our experience this feature is present in 100% of policies we have reviewed. We are often shocked, but not surprised, that clients don’t realize the contractual rights that they bought and paid for, but don’t realize they can exercise, within the limitations of their policy. They don’t understand their rights under the policy because they have not been fully informed at the time of purchase. This is unfortunate and borders on malpractice in our view. But it happens, and we are here to help.