It is amazing how many years can go by before the average client gets an annual policy review. Sometimes, it’s many, and that’s not good for anyone.
Life insurance is the largest unmanaged asset anyone ever owns yet it does need regular review. Yet, there is much more to review in a life portfolio review than just the policy itself.
There are good ways to review policy details and identify issues in your block, but this review is about the details of the person’s life and lifestyle and this is a “people case” and not just a “policy case”. This analysis of the policy owner is a critical part of the regular review process and a necessary companion to policy analysis.
So what is a “Policy Owner” Review? Here are the top 10 life and lifestyle review questions that make any life insurance portfolio review more valuable for you and the client or prospect:
- Why did you buy this policy in the first place? Has anything in your personal or business life changed to affect this reason? The answer tells you what matters.
- Has your health or that of anyone in your family changed? Is this a reason for you to consider policy options? The answer tells you the urgency of a review.
- Has your occupation, employer or business changed since you last purchased life insurance? Have your income and/or benefits changed? Income increases or benefit decreases can mean more (or less) coverage is necessary.
- Has your family grown since you last reviewed your insurance portfolio?
- Your beneficiaries under this policy are… is still what you want? This avoids unintentionally disinheriting family members.
- Have you updated your will and/or powers of attorney recently? How are you funding these important documents? Maybe it’s time for “Will Funding”?
- Do you feel you have enough life insurance to do what you want for your family or business? Starting here is ideal.
- Have you considered “critical recovery insurance”? Another way to describe Critical Illness insurance.
- Has your financial situation changed significantly since your last review? Always a protection issue.
- Have you purchased any other insurance since your last review? Why? What is it supposed to do? Find out where they are today.
This questioning approach demonstrates you care about them as people and not just new business. Just review their life insurance portfolio goes a long way to help you help your clients and your prospects more. And when you help more, you will sell more.