Posted by As of April 2020, 4, because#New Coronary Pneumonia OutbreakThe cumulative number of deaths caused in the United States reached 52,185, and the number of tested infections in the United States exceeded 92.
For every family,It may be a better choice to continue to "stay at home" as much as possible and wait for the epidemic to be completely resolved.and"Autonomous home isolationDuring this period of time, it was also a good time to check our insurance financial accounts.
How can I tell if my policy account is operating normally?
Holders of most U.S. lifetime cash value life insurance policies-whether they are"Lifetime Critical Illness Protection", "Retirement Planning"The demand for insurance, or to"Asset Protection", "Inheritance of Wealth"Insured by the demand for insurance——After successful insuring, the insured often puts the policy documents in the cabinet where important documents are stored.
This type of account is a long-term financial account that runs for life, and policyholders receive an annual bill every year to inform the actual operation of this type of policy account.But inNew Coronary Pneumonia OutbreakDuring the "home quarantine" period, we have more time toHold for many yearsOfConduct a risk review and performance evaluation on the policy account, Make a comparison between the "expected situation" and the "real situation".
(Sample ShowCase Credit©️ LifeInsight)
During the home isolation period, we can take out the insurance policy documents and contact ourBroker or professional advisor,Learn more:
- When we applied for this policy,expectedWhat is the annual balance, income or dividend?
- ourIn the policy accountNow actualHow much is the balance, and what are the annual earnings or dividends?
- Is our policy account in a healthy state?
- What kind of benefits can be added to our policy products?
- ...
Comparing the initial design plan of the policy account and the actual operation in the past few years can help us make the following three choices:
1. "Enhance" our policy account
After understanding the difference between "expectation" and "reality",If the overall performance of the policy account is higher than the expectations shown in the design plan,It shows that the policy account is operating in a very healthy state. With the help of the market and time, the financial goals we planned will eventually be achieved.
A more common situation is that the operating conditions of the insurance policy fluctuate with the actual performance of the market, which is a normal state..At this time, if we adopt an aggressive attitude, we can be professionalInsurance Financial Advisor, Discuss choosing different steps to improve the financial health of the policy account.
If the overall performance of the policy account is lower than the expectations shown in the design plan,We can also carefully analyze and compare whether this difference is within a reasonable range, and carry out the "enhancement" operation of the policy account under the principles of risk management.
If "the actual historical performanceLong-term lower than "expected", Or our living conditions have changed, we can also consider the following two practices.
2. "Upgrade" our policy products
In order to maintain and increase their market share in the fierce market competition, major insurance companies often launch newer products or provide more comprehensive compensation benefits and services that meet the needs of policyholders.
One of the most obvious market advances is that most old life insurance policies only provide claims for death.And now, in"Comprehensive protection" market.WelfareThe concept of has begun to be gradually recognized by the market public.
Some life insurance product lines of American insurance companies,Began to provide lifetime coverageMajor diseases.Chronic disease和Terminal illnessAdditional claims services.
OnNew Coronary Pneumonia OutbreakAs it spreads, we may find that the insurance policy we hold,It only provides claims for "death circumstances".And now, the new crown epidemic may give us new requirements for the coverage of the insurance policy-we may beCancer, stroke, heart diseaseAnd other major diseasesPre-mortem welfare insurance claims"The demand is even stronger. If we face a rebound of the new crown pneumonia epidemic in the future, or a greater risk of the epidemic,We can have the insurance policy’s ante-mortem benefit payment available.
So while staying at home, we can contactProfessional brokerOrInsurance consultant, Through the Internet, discuss the feasibility and steps of "upgrading" the old policy.
3. "First Aid" our policy account
By reviewing our policy accounts, the holders of the policy account may find that the life insurance policy or annuity contract they are holding may not meet their current actual needs, or may not be able to achieve their current actual demand goals, such as:
- Actual dividends for many years,Long-term failure to meet the "expected" design plan display
- The actual average income of the policy for many consecutive years,Seriously deviate from the "expected" design plan
- The amount in the policy account,Significantly deviate from the value of the "expected" design plan
- Due to drastic changes in needs and living conditions,There is a serious shortage of benefits provided by the policy
Usually based on the above four situations, our insurance policy may face a substantial increase in the risk of "break-out", and it may also expose our contract funds to the risk of not being able to achieve the originally planned financial goals.
(What is Rollover for a policy account? Click on the picture to learn about the column)
At this time, in and professionalBrokers and insurance consultantsAfter the discussion, we can carry out a rollover between policy accounts, and transfer the funds left in the old contract account to another insurance company’s new product account. This operation is sometimes called "Policy first aid(Policy Rescue)".
Article summary
During the stay-at-home order period of the new crown pneumonia epidemic in the United States, it is a good time to comprehensively review our family insurance and financial management plan.Open your policy and sign with your policyBroker or financial adviserGet in touch, conduct an in-depth communication on the operation of the policy account and the latest benefits, and understand what options are available to the policyholders and what new options are available in the next year.
At the same time, whether it is "enhancement", "upgrade" or "first aid", please be sure to contact theProfessional brokers and financial advisorsCarry out an assessment and, with the assistance of professionals, operate in accordance with the standards of the legal process, so as to avoid tax problems caused by improper operation and non-compliance in the Rollover process*.
Disclaimer:
*The content of this article is an explanation of a strategy for the public for the purpose of learning and education.Before you take any action, please consult professional brokers and financial advisors in advance to avoid potential losses. *The content of this article is not intended as tax advice.Please consult your accountant before taking action on any information contained in this article.
