by Diane Rook-Johnson, FIC, CLU, CFP, LUTCF | Agent for Western Fraternal Life
Most people spend more time planning their summer vacation then they do planning or reviewing their insurance program. Many times I hear people talk about being "insurance poor," but not taking the time to review their insurance policies. To these people, I say, a review of your policy doesn't have to take a lot of time, there's no cost involved in having your policy looked at, and your family may end up very grateful that you did review it.
My first questions are about life changes that may have happened since you last reviewed the policy. Common life events to note are financial goals, income, debt, marriage, divorce, children, health, and retirement. The goal of these questions helps determine that you have enough coverage to provide for your expenses and loved ones after you die.
You do not want to be in a situation where the coverage falls short. I know of one case where a young couple did not update their policy, and when one of them unexpectedly passed, the house had to be sold because there wasn't enough death benefit for the remaining spouse to afford it.
I will also review your beneficiaries, or the people who will receive the death benefit after your death is reported to Western. You want these people to be aware of the policy and who to contact if something were to happen so they can file the claim quickly and the benefits can be used to take care of things.
In some cases, you may want to change your beneficiaries. For example, if you have named your parents as beneficiaries when your children were young, you might want to switch the beneficiaries to be your now adult children.
Your family will be grateful that you took the time to review your policy. Give your Western agent a call and make a note to review it annually. You can also contact Western's Home Office at 877-935-2467.
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Call 877-935-2467 to speak with a Western Fraternal Life Representative.