Life Insurance Audit

Most policyholders do not realize how much changes from the time they initially purchased their life insurance policy. But as situations change and needs shift, their original policy may not be best suited for them anymore. 

What is a Life Insurance Audit?

policy auditA life insurance audit is a comprehensive evaluation of a current life insurance policy to determine if the coverage still matches the policyholder's needs. If a life insurance policy isn't reviewed in a timely manner, it's not uncommon for the policy to no longer be suitable and they are not aware. An audit helps to identify changes in:

  • the policyholders needs
  • changes within the industry

The goal of these life insurance audits is ultimately to reduce premiums while increasing coverage specific to your needs. When policyholders first purchase life insurance, they base their plan around assumptions of future needs. As time goes on, those needs may change and therefore should be reflected in their policy. In addition, the industry is consistently improving around the products, pricing, and longer life expectancies. Your client's policies should improve alongside of the industry in both benefits and price.

Why is a Life Insurance Audit Important?

Just like any other financial investment, it is important for this asset to be managed. A life insurance audit is intended to identify any areas of improvement and either maintain or improve your current policy to match your needs. By analyzing the existing policy, re-evaluating products, and reviewing current goals, this life insurance audit can improve your financial outlook. Oftentimes audits reveal:

  • overpriced premiums
  • better coverage at a lesser price
  • risks of inactive policies
  • better cash accumulation or distribution
  • additional living benefits like critical illness, chronic illness or even LTC benefits

It's important to explore what you would like the policy to do with at what is currently available. By searching the market, it's possible to find a policy that can provide either a higher level of cash accumulation, a much higher death benefit, or extremely valuable benefits that older policies may not contain—like long-term care or accelerated benefits.

Review Your Policy with Chandler & Knowles CPAs

Rely on the team at Chandler & Knowles to review your current policy to make sure it is performing as well as it can. Schedule a meeting or call our office at (817)369-3681 to review your life insurance policy with us.