BENEFICIARY REVIEW

When was the last time you reviewed the beneficiary(ies) on your  life insurance polcy(ies)? If there have been significant life events since you purchased a policy, it might be a good idea to find it (if you can) and check to make sure that the current title (insured, policy owner, beneficiary) of the policy is accurate and current.  If you can’t find it, call policy owner services of the carrier to get the information.

Did you know that on most policies the only place you can find the name of the beneficiary is in the copy of the original application found at the end of the bound contract?  That’s one reason why insurance companies are so picky about how the application looks when they get it for consideration.  They know it’s going to become part of a legal contract.  If still in force when the insured dies, some very important decisions are going to be made someday based on the information in that contract.

And, here’s the sales idea:  perform this same service for your clients.  You may not have sold them any life insurance, but that’s even more reason for you to know this information.  As a trusted advisor, to whom do you think they are going to make one of their first calls at the death of the insured?  In fact, they may ask you what to do with the money that comes from the insurance policy.  As part of the review, it’s an easy transition to talking about the policy itself and whether all insurable risks against premature death have been covered adequately.

American general has set aside some very helpful documents on their website.  Click here,  Beneficiary_Review_Playbook  and, make a Beneficiary Review part of your next meeting with your clients and policy owners.