Everyone has a vehicle maintenance plan, whether they are the one who performs the maintenance or not. Oil changes, tire rotations, and general tune-ups are a part of life, no matter how busy we are. Without a routine maintenance plan in place, your vehicle will not operate at its peak performance. You may not realize it, but your life insurance has a maintenance plan too, and the consequences of ignoring it can be just as costly.
Each year, your insurance company sends a summary of how your life insurance has performed over the past 12 months. It includes valuable information about what premiums were paid, the amount of interest credited to your policy, and overall account value. Most importantly, it tells how long your policy is projected to last. If you are like most people, this annual statement gets filed away with the rest of the paperwork.
At this point, you may be asking yourself if you have a routine maintenance plan in place for your life insurance policy. Most people don’t have the time to understand how their life insurance policy works, much less annually review its performance. However, continually assessing your policy is critical in helping to ensure your plans are carried out in a way that is consistent with your specific needs and priorities.
So what’s the solution? Consider an annual life insurance policy audit. A policy audit is simply a review of your existing coverage and needs. The goal is to identify any gaps in your insurance program and take any corrective action that may be needed.
To begin a life insurance policy audit, the only thing that will need to be done is gather up your information and share it with your insurance advisor. This includes your current policies, last annual statement, and any inforce projections you have. A good advisor can then provide the following to make sure your coverage still meets your objectives:
- An analysis of your policy’s current and projected performance.
- An understanding of current riders and benefits.
- Potential coverage and premium options depending on performance.
Don’t let the engine of your insurance program blow up due to the lack of a routine maintenance plan. Make sure your life insurance policies are running at peak performance. Talk to your Federated marketing representative today about a complimentary policy audit.
Federated Mutual Insurance Company is recommended by 20 state and national auto dealer associations and buying groups for customized insurance programs and value-added risk management services, such as mySHIELDSM, the Risk Management Resource Center, and the Federated Employment Practices Network®. Visit federatedinsurance.com or contact your local marketing representative for resources you can use to create or enhance your own risk management program.