As the calendar flips to January, gyms fill up, diet plans are downloaded in droves, and fitness challenges take over social media. It’s the season of resolutions, a time to refocus on priorities and set the tone for a productive and meaningful year. For many, the focus is on physical health – getting stronger, fitter, and more resilient.
But while you’re thinking about your physical fitness, why not apply the same mindset to your financial health? One area that often gets overlooked, yet plays a crucial role in your overall financial well-being, is your life insurance policy. Just as you wouldn’t ignore your annual physical or your fitness tracker, you shouldn’t neglect the regular “checkup” your life insurance policy needs. January is the perfect time to review your coverage and ensure it’s in tip-top shape to meet your goals.
Why January?
There’s something about the New Year that inspires reflection and goal-setting. It’s a natural time to take stock of where you are and where you want to go. Life insurance often sits in the background of your financial plan – a safety net you hope you never need. But like any good safety net, it needs to be examined periodically to ensure it will hold up when it’s called into action.
A lot can happen in a year. Maybe you welcomed a new child into your family, purchased a home, or made strides in your career. Or perhaps your goals have shifted – toward retirement, paying for college, or leaving a legacy. Your life insurance policy should reflect these changes.
The Fitness Analogy
Think about your life insurance policy as you would a fitness regimen. If you’re hitting the gym but not seeing results, you don’t just quit – you adjust. Maybe you work with a trainer to refine your routine, swap out exercises that aren’t effective, or focus on a different goal. Your life insurance policy works the same way.
- Build Strength: Just as strength training makes your body more resilient, ensuring you have the right life insurance coverage strengthens your financial future. Is your current policy enough to cover your family’s needs in the event of the unexpected?
- Stay Flexible: Life changes, and your financial plan needs to be adaptable. A policy that fit your needs five years ago might not be enough today. Reviewing your coverage ensures it keeps pace with your responsibilities and aspirations.
- Measure Progress: In fitness, progress is measured in pounds lost, muscle gained, or miles run. In your financial life, a review helps you measure whether your policy is performing as it should, providing the right benefits at the right cost.
Key Questions to Ask in Your Policy Review
When reviewing your life insurance, here are some questions to guide the process:
- Does My Coverage Reflect My Current Needs? Major life events, such as marriage, children, or a new business venture, can drastically change the amount of coverage you need. Is your policy still aligned with your current responsibilities?
- Who Are My Beneficiaries? Life happens. Are your listed beneficiaries still the right ones? Have family dynamics shifted, or has someone entered or left your life? You would be surprised how many people divorce and remarry without revisiting their policies, leaving an ex-spouse, not the current one, as beneficiary on a policy.
- Is My Policy Type Still the Best Fit? If you have term insurance, is the term nearing expiration? Would converting to a permanent policy better suit your long-term goals? If you have a permanent policy, are its cash value and performance meeting expectations?
- Am I Getting the Best Value? A review can uncover opportunities to adjust premiums, improve coverage, or even secure a better policy. Carriers are making changed to policy offerings all the time, and better options may exist today versus when you purchased your policy. And if your health has improved, you may be eligible for a better rating and therefore cheaper premiums.
The Financial Wellness Resolution
Making a resolution to review your life insurance policy is one you can actually keep – and it’s far less daunting than running a marathon or cutting out sugar. The process is straightforward, and the benefits can be immense. Imagine the peace of mind that comes with knowing your family is protected, your goals are supported, and your broader financial plan is stronger.
This review also offers an opportunity to integrate your life insurance policy with your investment and financial planning strategies. Life insurance isn’t just about protection; it can be a tool for building wealth, funding retirement, or creating a tax-efficient legacy.
We Can Help
At Transcend Advisor Group, we offer complimentary, comprehensive independent life insurance reviews that identify how well your existing policies are performing and whether they continue to meet your needs. Our goal is to ensure your life insurance is efficient and adapts to your life and goals.
Schedule your policy review today. It’s a simple, meaningful step toward a financially fit year – and one resolution that will keep giving long after January is over.
Your financial health deserves the same dedication as your physical health.
Let’s get started
