How often should I review my life insurance needs or wants?
We suggest at a minimum on an annual basis.
The annual review document and the assessment are for you to assess what’s gone on over the last year.
Maybe there’s been a job promotion, maybe there’s been a pay increase, maybe you’ve paid off some debt and you freed up some cash flow, you want to save more.
Maybe it’s time to convert some of your convertible term over to more whole life to save more money.
The actual need for a death benefit change is going to be when your income is increased, when your assets have increased in size.
Remember, it would be ideal to have your net worth equal to the amount of actual permanent life insurance that you have.
There’s term insurance on top of the permanent insurance.
When you met with us here at Vault AIS™ you went through an assessment of life insurance needs. We base the need from your economics at that time.
This had to do with:
- Your income,
- Your health,
- Your lifestyle,
- The amount of assets.
Those are the four major categories.
There are other key factors in there, but those are the four major ones.
What has changed in your life? Has your income increased?
Is there a greater need there and risk that could take place if something happened to you?
For example, if you came in and you’re meeting with us and started the process, and you had an income of $250,000. It would take $5 million of total death benefit between convertible term and whole life insurance. $5 million of total death benefit in an account at 5% to peel off $250,000 a year of replacement income. $5 million seems like a large number, doesn’t it? It is.
The $5 million equates to that $250,000 a year of replacement income for your family.
I know that if you’re a client of VaultAIS™, you want that for your family and you want it because it empowers you to continue to go out and produce at the highest level.
How often you want to assess that?
Minimum every year.
When something happens, big business opportunity, advancement in career in some way, income coming in, and you could qualify for more, then we want to address that throughout the year.
Transfer the risk versus retain it. Continue to produce at the highest level in your #1 Investment, your career or business, and leverage #1 Asset by enjoying and having that peace of mind, enjoying life more, being more present than ever before and having that peace of mind in your life.