Be honest. When was the last time you looked at your life insurance policy details? Better yet, when did you perform a complete life insurance policy audit? Life moves pretty fast and your insurance policy should keep up. If you haven’t reviewed your policyin years, now is the time.

An audit is an annual opportunity to review your plan, identify any gaps in your coverage, and make important changes or updates. It’s also the perfect opportunity to assess the performance and financial health of your insurer. In this article, we review how to get the most value from a policy audit and make sure your coverage still meets your needs.

Your policy should change over time

Has your life stayed the same since you first took out your life insurance policy? Probably not. You might have gotten married, welcomed kids, bought a new home with a bigger mortgage, or even changed careers. All these changes in lifestyle can create significant gaps in coverage and provide a compelling case for why your policy should be reviewed.

What’s more, your long-term financial goal may have changed. Whether it’s income replacement, estate planning, or business protection, if the type of policy you have no longer matches your goals, you could be paying for something you don’t need.

To get the most out of your life insurance policy audit, ask yourself some key questions:

  • Are your beneficiaries up to date?
  • Is the ownership structure still correct?
  • Are there any changes in your health or hobbies?
  • Is your policy still in good health?Is the issuing company still in good health?

You’ll also want to obtain essential documents, including policy illustrations, your most recent annual statement, and a current in-force explanation. These will help you see if your policies are still performing as they were supposed to.

Is your policy keeping up with you?

Ultimately, your policy is only as strong as your insurer. That’s why it’s important to make sure your insurance carrier can meet its future obligations. One way to do that is by reviewing their ratings, investment portfolio, and performance compared to other companies in the market. To evaluate your insurer’s financial strength, you’ll want to:

  • Research their credit ratings (from A.M. Best, Moody’s, Fitch, S&P).
  • Review their financial reports or balance sheets.
  • Compare their solvency ratio or investment portfolio allocations, if available.

Need to make some life insurance policy changes or updates? Ready for an audit but not sure where to start? Working with an experienced life insurance consultant can make all the difference.

For over 30 years, Frank Campbell and his team have helped clients secure customized life, disability, and annuity plans while providing in-depth policy reviews. With over 50 insurance companies to choose from, we find the best option for your needs — today and tomorrow.