The truth about life insurance policies

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People avail of health and life insurance policies to get them and their loved ones covered. However, it’s not enough to maintain that coverage. To experience the best care, it’s important to keep the insurance policies up-to-date with the current state of one’s life.

Updating insurance policies means taking a look at it every now and then to see if the provisions are still appropriate for one’s needs. If there are any changes in a policyholder’s income, the policy must be updated. A significant rise in one’s income—according to State Mutual Insurance’s CEO and president Delos H. Yancey—could mean a jump in the amount they are insured for.

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When a policyholder transfers to another city, their insurance policy must be updated accordingly, especially when the policy has been made to finance their mortgage commitments. The cost of growing a family will increase once a policyholder has more children. One major factor for reviewing and updating policy is the birth of children. In this day and age, remarriages have become more common. Updating the beneficiary in the policy is integral for this matter.

A boom in the property market may increase the premium. Delos H. Yancey says that policyholders advanced in age usually take out life insurance to assist their families in meeting any inheritance tax bills that are payable on their properties. While it may seem as though reviewing and updating a life insurance policy is a one-time activity, it isn’t, and it requires much attention from the policyholder.

Delos H. Yancey III is the president and CEO of State Mutual Insurance. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. Head over to this page for more information.