The risk management process begins with identifying financial exposures, such as assets that could be impaired, disabling accidents or deaths of family members that would affect the family’s cash flow, and personal and professional liability exposures.  An overall review of those coverages will identify if you are adequately protected, but not over insured or overcharged.  Since insurance needs vary considerably over a client’s lifetime, annual updates are advised. 

Life insurance needs usually increase if you marry, have children, or incur debt.  Your needs may decrease, however, as children graduate from college or your spouse returns to work.  In contrast, if life insurance is required to provide liquidity for estate planning, the need may increase as your estate grows.  Tax benefits can result if the insured has no incidents of ownership; the policy may be excluded from the insured’s gross estate for federal estate-tax purposes. 

Sorting through your policies can be a major undertaking considering you may have multiple policies in the following areas: