Common, overlooked insurance mistakes might include:
- Out-of-date beneficiary designations or failure to name a contingent beneficiary
- Failing to keep adequate coverage to protect loved ones through life’s passages
- Not anticipating that term insurance will likely run out before you do
A less common, yet extremely costly mistake, is the recent trend among several well-known insurance companies to silently increase the “internal cost” of insurance charged on in-force life insurance policies. Policy owners who once believed they could stop paying premiums (or that their coverage would last a lifetime) are now realizing they must significantly increase their out-of-pocket payments, or their coverage will lapse without any benefits. In their defense, Insurance companies are quick to point out that a rate increase is lawful and expressly stated in each policy.
So now what?
Unfortunately, for individuals of advanced age or in poor health, remedies are challenging to find. For everyone else, however, a thorough review of your complete insurance picture by an independent expert can help determine the best course of action. In absence of regulation that requires a periodic ongoing service commitment for traditional insurance agents, unanticipated issues will continue to impact unsuspecting policy owners. One way to protect yourself is to choose an insurance advisor who understands the importance of on-going evaluations and views insurance as a component of a larger wealth management strategy. Here at Old National, collaboration between our Client Advisors and your accountant and/or lawyers provide regular insightful personal insurance and financial reviews.
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