Broker Check
Time for an insurance review

Time for an insurance review

September 22, 2021

Are you over or under insured?

Insurance plans are not just for protecting your family and business assets in case something happens to you. They can also be used to create a fixed or variable income stream for you or a loved one. Insurance plans can also be used to cover specialty health issues such as long-term care coverage. Reviewing your entire financial strategy on a regular basis can help to identify how insurance coverage could help you reach your goals and provide protection for your estate.

Common Misconceptions

While over half of Americans have some type of life insurance, people still incorrectly believe it costs much more than it actually does.1 According to the Insurance Information Institute, half of the population falsely believe it will cost three times more than what the actual cost is for life insurance. And Statistica found that people had misconceptions about how their beneficiaries would owe income tax on the death benefit, which isn’t the case.2

Facts and Trends

Here is some data to help you compare how you measure up to other U.S. policyholders and to take into account as you determine your needs.

  • Only 20% of workers are covered by pensions today which makes guaranteed lifetime income afforded by immediate income annuities appealing to some.3
  • 70% of people turning age 65 will need some type of long-term-care services in their lifetimes.4
  • 48% of people turning age 65 will need some type of paid long-term-care services in their lifetimes. 3
  • 4% of new long-term care insurance buyers were between ages 50 and 69.3
  • 4% of new long-term care insurance buyers purchased coverage for 3 years or less.5
  • 54% of Americans are covered by some type of life insurance.1
  • 8 is the average life expectancy in the U.S. in 2020, down a full year from 2019.4

Insurance Questions to Ask Yourself

While there is a lot of focus on accumulating wealth and building a nest egg for your family, taking time to evaluate how you are protecting your wealth can be a critical step.

  • Do I need an annuity plan to supplement my retirement income? Some investors use an annuity to help guard against outliving their retirement savings. Fixed and variable annuities are among the most common. Fixed annuities guarantee the principal and a minimum rate of interest while variable annuity account values and payments are based on the performance of a separate investment portfolio.
  • Am I prepared for long-term health expenses in retirement? Long-term care expenses can take a large toll on retirement savings. There are a variety of plans that can cover in-home care, assisted living facilities, as well as nursing home expenses. This way you don’t have to dip into your retirement savings to cover these expenses if they arise.
  • Do I have the right amount of life insurance? Yes, it is possible to have too much coverage. Do you not have minor dependents anymore? Or have a lower mortgage than you originally did when you got the plan? Ideally, your insurance policy would provide for your dependents and cover your income and any major debts. If those have lowered, then you may not need as much coverage. However, you can also end up with too little coverage if you have a new baby or a larger mortgage and you haven’t adjusted your policy.


There are a lot of options available to you. We can help you assess your particular situation and answer your questions about the insurance strategies available to you. Reach out to us for a conversation about your future. CONTACT US