Your financial goals and objectives change over time. Financial professionals will assess the current needs when evaluating the policy and provide alternatives that may be more appropriate for your current situation.
People are living longer and mortality costs have come down over time. Carriers had to reprice their products in 2009 and 2019 to reflect mortality experience. Depending on when you purchased a policy, you could be spending more than you need to for the coverage amount.
Market returns and long-term interest rates dictate how a cash value policy is funded when initially purchased. In addition, the actual returns experienced determine how the policy actually performs. Sometimes, the discrepancy between the assumed returns and actual returns can materially affect the cash values, premiums and death benefit. Getting current, in-force ledgers periodically helps you keep the policy on track to be there when needed.
Incorporating policy reviews as a part of your overall financial planning practice and a permanent agenda item for your annual meetings with your advisor can add value in multiple ways.
