What Does Your Life Insurance Cover? 5 Essential Keys You Should Review Today
Many people think that simply having life insurance is enough to be protected. But when was the last time you reviewed the details of your policy? Are you really sure what your life insurance covers and if it actually fits your current needs?
As a financial planning specialist, I can tell you that an outdated policy may leave you more vulnerable than you imagine.
Today I invite you to take a closer look at your coverage. Here are 5 key points you should review as soon as possible:
1. Does Your Policy Include Living Benefits?
One of the most common mistakes is thinking life insurance only works “after you’re gone.” Modern life insurance can activate benefits while you’re alive, in cases of:
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Critical or terminal illnesses
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Chronic conditions
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Need for liquidity to cover medical expenses
If your policy doesn’t include accelerated benefits or living benefits, you could be missing out on vital protection for yourself and your family.
2. Are You Insured for the Right Amount?
Your financial, family, or health situation has likely changed since you first purchased your life insurance. Ask yourself:
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Is the coverage amount still enough to cover your mortgage, debts, and family expenses?
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Have you considered your children’s education or income replacement for several years?
A professional review can help you recalculate the right amount according to your current goals.
3. Who Are Your Beneficiaries Today?
It’s common to forget updating this information after major life events such as marriage, divorce, or the birth of a child. Make sure that:
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Your beneficiaries are up to date
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The distribution of money is clear
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You avoid legal conflicts or outcomes that don’t reflect your current wishes
4. Does Your Policy Accumulate Cash Value?
Some life insurance policies, such as permanent or indexed ones, build cash value over time. This money can be:
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Used in emergencies
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A way to complement retirement
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A source of liquidity without penalties
Yet many people never take advantage of this feature simply because they didn’t know it existed.
5. Are You Working With a Certified Advisor Who Understands Your Needs?
Life insurance is not a one-size-fits-all solution. Every family, every business, every story… is different. That’s why personalized advice can make the difference between having just a piece of paper and having a living tool that truly protects you.
FAQs About What Life Insurance Covers
1. What happens if I don’t update my beneficiaries?
The money could go to someone unintended or create legal disputes among heirs.
2. Do all life insurance policies include living benefits?
No, only some modern policies include them. It’s crucial to review your contract.
3. What’s the difference between term and permanent life insurance?
Term life covers a specific period (10, 20, 30 years), while permanent lasts for life and may accumulate cash value.
4. How do I know how much coverage I need?
It depends on your debts, family income, future expenses, and lifestyle. An advisor can help calculate it.
5. Can I use my policy’s cash value without losing coverage?
Yes, some policies allow internal loans that don’t cancel your protection, though they may reduce the final benefit.
6. How often should I review my life insurance?
Ideally once a year, or after a major event like marriage, divorce, birth, or job change.
Reviewing your life insurance policy isn’t complicated, but it is urgent. Your priorities, family, and finances change—and your insurance must evolve with you.
If you’re unsure about your coverage, schedule a FREE consultation today. Click here to get started.
