Life insurance policy reviews: How often should they be done?

By David Shields

WealthMark Advisors, Inc

Now is the right time to contact clients you haven’t spoken to in at least three years to re-evaluate their insurance needs.

Consider the changes your clients might have gone through. The period between June and September sees the most weddings, as well as births. Thousands of couples have just helped the last of their children move out to go to college. And January has long been the month in which most divorces take place. All of these life-altering events demand a life insurance policy review.

To get a clear picture of how clients’ circumstances or attitudes toward their coverage might have changed, ask the following questions:

• Can you offer the same coverage they currently have at a lower cost?


• Does a death benefit rider need to be added?


• Does a term life policy need to be converted to universal or whole life?


• Have there been any marital changes or recent additions to the family?


• Has a new home been purchased?


• Have there been any beneficiary changes?


• Have there been any changes in health?

Even if the appointment doesn’t lead to a new sale, catching up with old clients is good for business. According to a LIMRA study, 78 percent of consumers who shared a past working relationship with an agent purchased life insurance; shoppers dealing with a new agent, on the other hand, were far less likely to become buyers.

Furthermore, agents who focus on delivering an attentive customer experience are more likely to be rewarded with repeat business and referrals than agents who never follow up with their clients. If you haven't already done so, get in the habit of checking in with past customers to review their life insurance needs.