by Michael Ettinger, Esq.
Let's face it, life insurance is a mystery to most people. Few know whether they have the best insurance for the money.
Here are some changes that may require you to review what you have.
1. Interest rates have fallen, lowering the internal rate of return on your policy. This may cause it to "blow up" at a later date, where only the payment of large premiums will save it.
2. The coverage may be inadequate, or it may be excessive, depending on your changed circumstances. Perhaps the money might now be better used elsewhere, say for long-term care insurance instead. Or have both - borrow the cash value to pay for long-term care insurance and keep the death benefit too.
3. Due to new life expectancy tables, you may be able to get more insurance for less money.
4. The financial stability of your insurance company should be looked at every few years. After paying for so many years you want to be sure of the long term viability of the carrier.
An insurance audit will reveal deficiencies, point out excesses and provide you with recommendations. If you would like a referral to a Certified Life Underwriter (CLU) who is knowledgeable in reviewing, analyzing and making policy recommendations, a New York estate planning lawyer can provide a referral. At Ettinger Law Firm, please contact Pattie Brown at 800-500-2525 ext. 117.