When Was the Last Time You Had a Life Insurance Policy Audit?

An audit is simply a check-up on your life insurance policy to make sure it is doing its job. Experts recommend that you have a policy audit at least once per year to make sure you have sufficient coverage and the best rate. An audit doesn’t require much of your time and costs you nothing, yet it gives you the peace of mind you expect from your coverage.

An audit will answer these six key questions:

1. Do you have enough coverage?

Have circumstances changed in your life since you first purchased the policy? Do you have a need for additional coverage? Higher income, a new home, or an expanding family may create the need for more coverage.

2. Is your premium guaranteed for as long as you need?

For how many more years are the face amount and premium guaranteed? Is this enough time, or will you need coverage beyond that point. If you need additional coverage, you’ll want to plan ahead to avoid steep premium increases.

3. Is the rate you are paying still competitive?

Are lower rates available, either for the short-term or the long-term? Has your medical condition or lifestyle changed in such a way that you would qualify for a lower premium?

4. Do you still have the most appropriate product?

Is the existing insurance policy still appropriate? Or would alternative products such as term, universal life, or whole life provide more value?

5. Are your owner and beneficiary designations correct?

Are the original designations still relevant? Or have changes taken place regarding your family, business, and estate that call for amendments to the policy? If your children have become of legal age, a beneficiary change may be appropriate.

6. Should you hold a policy on your spouse, kids, or business partner?

Does your spouse have enough coverage? Is it time to start policies on your children? How about life insurance on your business partner and key executives to protect your business interests?

The audit process is simple:

Step 1:

Let’s discuss any changes to your circumstances, concerns you may have, and objectives you may aim to accomplish.

Step 2:

I will obtain an in-force illustration of your current policy. One of my underwriters may also ask to speak with you to get any additional data that would be needed.

Step 3:

I will report back to you with an assessment of your current policy and a comparison with available alternatives and recommendations.


The Results

The audit is designed to give you peace of mind. On the one hand, we may conclude that your policy is appropriate and nothing should be changed.


On the other hand, we often find that audits reveal coverage that needs an adjustment. Fortunately, we will have generated options to solve any problems, and are able to implement solutions quickly.


If you have not had a policy audit in the last year, click here to contact us.