American consumers in the market for a life insurance policy may be surprised by the variety of options available.
For those new to life insurance, the specific nuances and attributes for each type of policy can be a bit daunting. An experienced financial professional can help guide customers through the process by assessing their life insurance needs and explaining the pros and cons of each type of life insurance.
But no matter what type of coverage is purchased, consumers should regularly review their policies for as long as they are in force.
Changes in family, job, and economic situations can affect both the need for and cost of life insurance. The life insurance needs for a family with three young children, student loan debt, and a mortgage may be very different than empty nesters who are beginning to prepare for retirement.
Routine assessment of life insurance needs with a financial professional is a critical part of financial wellness. In fact, households who have a written financial plan prepared by a financial professional are 21 percent more likely to be “very confident” or “extremely confident” that they will reach their most important financial goals.
Below are some tips on how consumers can stay engaged so that their life insurance coverage remains adequate under any circumstance:
Brian Bayerle is Senior Actuary for the American Council of Life Insurers (ACLI). Brian’s responsibilities include actuarial matters related to regulation of reserves, nonforfeiture values, and risk-based capital. Prior to joining ACLI in 2017, Brian worked for a life insurance company and a consultancy.
