Policy Review

With the new year comes new ideas, fresh starts, resolutions and goals.  It is also a time to look back and reflect on the past year. Was it everything you had hoped?  Did you accomplish everything you set out to the previous January?  If not, now is the time to make adjustments and set new goals.

In this reflection comes the perfect time to do policy reviews with your clients.  Why is it important to do policy reviews with your clients?  Well let me ask you this, do you review your own policy annually?  My guess is most of you do because you want to make sure it is performing how you would like and it continues to give you the proper coverage that you need.  Let’s face it, the way we picture the year to go in January, is not usually how it ends up in December.  Things change, life events happen.   Whether they are for better or worse, they change.  Your clients’ needs are not always going to be exactly the same as the day they took out the policy. Maybe they got a new job or even started their own business.  They got married or divorced, bought or sold a home.  Maybe they had children, or lost a parent.  Any life change such as these may trigger the need to review a life insurance policy.

Here are a few reasons to conduct a policy review according to the North American website:

  • Stronger client relationships: When you take the time and look out for your clients’ needs you position yourself as a professional.
  • Potential to improve your clients’ situations:  Depending on the scenario, you may help a client save money, gain more coverage for the same premium, or help reassure a client that everything is on track.
  • An opportunity to increase your sales: Often times a client review reveals needed changes and an opportunity for you to help grow your sales.

So where do you begin?  Start by reviewing your clients’ policies yourself and obtaining an in-force ledger.  Start by looking at clients with term life insurance.  Is conversion a possibility on their policy? Are there policies coming to an end of their level-term periods?

Some things to ask for clients with permanent life insurance policies:

  • Have interest rates changed dramatically since the policy was taken out?
  • How is the cash value building on the policy?  Is it at an expected level?
  • Does the client now need a product with living benefits or a longer death benefit guarantee period?

The important thing is that you are sitting down with your clients at least once a year.  Talk about any life changes and look at their current coverage and see if anything needs to be updated.  It may just be as simple as needing to update the beneficiaries, but taking the time to meet with them is very important.  Some of your best sales may likely come from your current client base.  If you are still not sure where to start, contact us, and we can help.  We are here to make this process simple for you.  If the policy was originally written through ISG, we can obtain any policy information and ledgers for you as well as conversion options.  Call us today!

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