Should You Keep Your Life Insurance Policy As-is?

The wave of 40-degree days recently across the D/FW Metroplex reminds many Texans new and old that we do actually get a bit of fall weather, leading to one reality: Thanksgiving cometh.

Turkey, football and giving thanks . . . all hallmarks in addition to other traditions you and your family may have established throughout the years.

What is changing for you this Thanksgiving? Is the first time you'll be meeting your son's new fiancee? Is this the year your daughter graduated and finds herself in a promising career and making a decent paycheck? Is this the year you'll sit down at Thanksgiving after retiring earlier this year from your corporate career?

Whatever is the same or different, this may be the only time you gather the family around a common table to discuss important family issues.

Though there are many topics you can discuss at the dinner table or around the television (you may want to leave the subject of politics alone), why not discuss the importance of life insurance?

What other topic can motivate a sense of thankfulness for you and your care for your family?

That Was Then

One thing to consider is whether or not your life insurance policy is still doing for your family what you intended it to do.

You may have taken out a term policy to get you to the point where your children have flown the coop, are pretty steady in the air and you can convert your policy for final expenses.

Or, you may have a permanent life insurance policy you plan to use for some of life's expenses and/or as a financial vehicle for retirement.

Where you started doesn't necessarily dictate where you are right now. You have options and you may want to take inventory of what your current situation calls for.

When you initially purchase life insurance, you usually answer the following common questions in the event you were to pass unexpectedly:

• Do you need to continue to protect your family's income?
• Are you looking to leave a cash legacy to your adult children or grandchildren or favorite charity?
• Do you want your policy death benefit to pay for your final expenses, e.g., burial?
• Do you want your policy death benefit to cover large debts, e.g., mortgage?
• Do you want your policy death benefit to cover the cost of education for your children?
• Do you want your policy to accumulate a cash value for you to use for retirement, major purchases, gifting toward children, etc.?
• What kind of premium do you want to pay?

This Is Now

Now that you are a little more seasoned along with your policy, maybe it's time to revisit those questions from a different angle:

• How much life insurance do you need at this point. Is your term life insurance coverage period about to expire?
• Do my adult children have their own life insurance policies?
• Do you access the cash value from your permanent or whole life policy?
• How long do you want to continue to pay the premiums on a life insurance policy?
• What would you want to keep your spouse and/or children from having to pay if you aren't around to pay it?

These are certainly not the only questions to ask when contracting a policy or when thinking about converting, cashing out or letting expire, however, it is a good start and worth your consideration.

As an independent insurance broker, Insurance For Texans has access to great options for coverage whether you prefer term or permanent coverage. If you don't know what works best for you, we're happy to help.

With the upcoming holiday season rolling near and the possibility of your family gathering together, let it be a certain reminder to let the gratitude you have for each your loved ones to extend beyond the feelings and cover the financial as well.