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The Importance of a Policy Review--with a Vape Kicker

Discussion in 'Vaper Insurance Specialist' started by David R Gould, Sep 28, 2016.

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  1. David R Gould

    David R Gould Full Member

    Today we are going to examine some important reasons to re-examine your existing life policy and finish with a critical Vape specific issue.

    So you are already protected with life insurance, good job! But, when was the last time you reviewed it? If you are like most people, maybe never. Industry standard advice is to conduct a review of your policy annually, and personally I would recommend at least every few years. A major life event like a birth, marriage, or major financial change can also mean a review is necessary.

    Let’s take a look at some of the elements of a life policy that often need tuning up:

    Coverage Amount

    Is the “face” or coverage amount of the policy still appropriate to your current situation? It is possible that due to a change in your finances, you might have too much or not enough. Think about why you took out the policy originally. Do you still have that mortgage? Are your kids still financially dependent on you? Are your earnings still the same? These and other factors may inform a need to adjust your coverage amount.

    Policy Duration

    A very important aspect of your policy is how long it is designed last. Will your coverage last as long as you do or will it expire prematurely? People are often surprised to find out they have a “temporary” or “Term” policy that is only designed to last a fixed number of years. Yet, when I ask how long clients want their coverage to last, they invariably say “Until I am gone”. My role is to analyze a client’s needs and find the right tool for the job, finding the best match between performance and cost. Both temporary and permanent solutions are available for Vapers at Non Smoker rates.

    Beneficiary Designation

    Should your policy benefit still go to the person or entity you originally designated, or have there been changes in your life that need to be accounted for? I can’t tell you how many times I have seen ex-spouses still listed as Primary Beneficiary long after a divorce! Ouch! And what’s more, the Beneficiary designations on a life policy actually trump what is in your Will. It is worth the extra effort to make sure the benefit goes to the right recipient.

    Policy Type

    Do you know if you have a Term, Universal, or Whole Life policy? Each of these types of policies have different purposes and functions. Knowing the available options and having a basic understanding of each type is the best way to ensure you have made the right choice. It is common for clients to start out with one type of policy and move into another as time goes on.

    And finally, the Vape Kicker, a Health Improvement.

    I saved the best and most important reason for a policy review for last! When an existing policy holder improves their health after the first year of coverage, most carriers will allow them to apply for a rate reduction. Essentially, you ask your insurer to re-evaluate your health to see if you now fit into a better rate class. If successful, your premium will be lowered immediately and for the balance of the policy duration. This process could be triggered by an improvement in your cholesterol, blood pressure, or weight. Or it could be because you quit smoking!

    Since many Vapers are former cigarette smokers, it is likely they are paying the high premiums associated with a tobacco health rating. So, Vapers who have quit smoking for at least a year can just ask their company for a rate reduction, right? Unfortunately it is not so simple as that. Since most life insurance carriers still consider vaping the same as smoking they are not going to honor a rate reduction. Now there is no question in my mind that you have made a healthy choice and are surely going to live longer because of it. Don’t you agree your life insurance rates should reflect this? Great news! There is an unclaimed reward waiting for many Vapers who have existing life insurance. Even if your existing tobacco rated policy is years old, if your health has not declined, you can still potentially obtain a NonSmoker rate on a new policy and save thousands in the process. For Vapers, this is definitely the most important reason to get your current life insurance policy reviewed today. Lower risk should equal lower premium! Vaper=Non Smoker.
     
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