Your Insurance Matters: Are people depending on you?

Your Insurance Matters
Are people depending on you?
By Shirley R. Lamdan, CLU

Are people depending on you?
If you haven't thought about your life insurance lately, your plan may disappoint you. So discuss your program with your agent at a (no cost) life insurance review. You can also visit for user-friendly insurance calculators.
Chances are your insurance professional has already asked you to review your coverage. The review doesn't take long and it's a free service. Take advantage of it and you'll quickly find out if your plan is still right for your life today and the day your loved ones might need it.
When you sit down with your agent to talk about your changing life, both of you will be in a better position to determine if your needs and the needs of your family are still being met.
As your life changes, shouldn't your life insurance change as well?
Many life events can trigger a need for a change in your life insurance program:
- Income: Are there changes at work? Promotion? New job? Started a new business? Retired?
- Family: Has there been a birth or adoption? Has a child left home? Are there new grandchildren? Are you caring for a parent or other relative?
- Home: Have you purchased a new home or paid off a mortgage?
- Health: Have you lost those pounds you've been trying to shed? Have you quit smoking? Lowered your cholesterol? These positive changes can lower your life insurance costs! Negative changes might mean it's time to convert your coverage to a permanent plan before the conversion deadline.
- Inflation: If it's been awhile since you reviewed your insurance, does it still provide enough coverage for your family?
Here's an example of a policyholder of mine who waited too long to review his life insurance program. The high cost of waiting much too long will mean (unnecessarily) higher insurance premiums.
This 53 year-old Pennsylvania man put off reviewing his life insurance with me for years. He was always too busy. There was the job he loved which kept getting more and more demanding of his time and energy. Then, a few years ago, he had bypass surgery. In addition to his heart disease, he has developed other health issues.
Finally, he consented to an insurance review. He wanted to continue his current level of coverage but switch to another term life product as his current term plan is about to go up drastically in price.
Unfortunately, the few companies that would even consider an application from him will charge astronomical premiums due to his poor health.
He's better off staying with his current carrier but converting from term to a permanent plan. But at 53 years of age, permanent insurance will be very costly, especially for the amounts he wants and needs.
Had he done this review some 12 or 13 years ago, he would have had an easier time. Now, if he wants to continue to protect his family, he will have to pay a very high price. I'm not sure what he will do yet, but whatever he does, he will not be happy. And if he decides to do nothing and let his current coverage go, his family could be very unhappy one day, too.
A no-cost life insurance review sure beats the high cost of waiting.

Since 1982, Shirley R. Lamdan, CLU of Hagerstown, MD has been serving individuals, corporations, and nonprofits with independent retirement and insurance services. She can be contacted at 301-791-9427 and