Yes. It is a good idea to periodically have your life insurance policy reviewed. Like any other investment, the life insurance industry changes over time. It is important to make sure that your information is up to date and the policy is still the best solution for your needs.

If you haven’t had your policy reviewed in a long time or have never had your policy reviewed, basic information may be out of date. Incorrect contact information such as email addresses and phone numbers are very common in older policies.

Other things that are discussed in a life insurance review are beneficiary updates and coverage needs. If you have had another child, had a divorce or had a change in income for you or your spouse, these are all things that need to be addressed in a policy review. Sometimes policies issued at birth or when you were a child do not receive favorable ratings. If you are in good health, it may be a good idea to review your policy to see if you qualify for a more favorable rating.

Because people are living longer, some types of life insurance have become cheaper. If you have an older policy, it could be beneficial to look at other options that provide a higher death benefit. You may qualify for a policy that has a higher death benefit without an increase in your premium. If your policy has a large cash value, you can sometimes exchange your policy into another without paying additional premiums. It is important to conduct a full review before deciding if these options are right for you.

There are several types of annuities. Each has different features. The basic categories of annuities are fixed, fixed indexed and variable. Fixed annuities offer a fixed interest rate. These types of annuities are frequently offered with multi-year guarantees (MYGA), which offer an interest rate for a set number of years. Fixed indexed annuities have a crediting strategy that is based on the performance of a market index. There are several ways that the value of the annuity is credited such as a participation rate of the index or a cap rate where performance of the index is credited up to a cap. Variable annuities grow based on the performance of investments in underlying subaccounts. Annuities are considered to be long-term investment vehicles. Deferred annuities have an accumulation phase and an annuitization or payout phase. Annuities have a surrender schedule based upon the length of the contract. Annuities carry a penalty for early withdrawal that is outlined in the surrender schedule. An exception to this is that many annuities offer an annual penalty free distribution, usually 5-10% annually. The owner of an annuity can take withdrawals up to a defined percentage of the contract value each year. Single Premium Immediate Annuities (SPIA) do not have an accumulation phase and provide income through a one-time premium.

All annuities grow tax deferred and sometimes are available with other features such as lifetime income benefits. These features can be an alternative to annuitization, providing income while retaining some of the cash value. The sub accounts in a variable annuity can be subject to stock market risk. However, insurance carriers offer fixed and fixed indexed annuities with principal protection backed by the insurance company. Additionally, all 50 states, the District of Columbia and Puerto Rico have state guaranty associations which provide a safety net in the event that an insurer becomes insolvent and cannot pay policyholders. Each state has a limit on the amount of coverage but typically, the limit is $250,000.

Fees on annuities can vary. Most annuities have a surrender schedule with penalties for early withdrawal during the accumulation phase. Some annuities do not carry additional fees. Variable annuities usually carry additional expenses. Even on an annuity that does not have additional fees, added features, such as lifetime income benefit riders, may carry fees.