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.

Key moments when you should update your life insurance policy

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A lot of people tend to forget to update their insurance policies. It’s easy to regard life insurance as just one of your monthly bills. Changes in premiums happen all the time, and it’s not often that these are explained to us. However, certain life changes mean you have to revisit your insurance policy. Here are some key moments in life that should trigger a call to your insurance agent.

You are getting married or getting a divorce: If you are gaining or losing a dependent, you need to update your insurance policy. Not doing so could either not include them into your plan or you’ll be paying a higher premium for a person you are no longer with.

You have children: If you’re not planning on getting a separate insurance plan for your children, you may want to include them in yours. Increasing your coverage is just one of the many options that is readily available to you. Such changes can help secure your children’s financial future, help them later on with education expenses, or simply see to it that they are honored part of your estate if the unthinkable occurs.

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You got a new job: Depending on which way your salary went, you need to revisit your insurance policies. It could be possible to be burdened with an insurance premium that’s too expensive for your new job. At the same time, upgrading your coverage is a good choice if you got a significant pay increase.

You finally retired: For people who are part of a group life insurance policy through an employer, retiring would mean losing the coverage. Now that you’re relying on insurance as your income adjusting it according to your lifestyle is necessary.

Delos H. Yancey III is the chairman, 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. Visit his company's website for more on its services and history.