Updated 12/1/2023

A client’s life and health insurance policies are a key part of their overall financial plan. It’s important to review these policies each year to ensure that your client has the coverage they need. If there are gaps, you can work with your client to implement proper coverage.

In this checklist, we focus on issues to consider when reviewing your client’s policies, including:

Health Insurance

• If clients are married and both have access to health coverage, does it make sense for them to each take their own coverage or to choose the better of the two plans to cover both?
• If the client is paying for coverage on their own, has their situation changed such that they should consider shopping for a new policy?
• If the client is retired and on Medicare, they should review their situation each year to see if they need to make any changes during the annual enrollment period. They also need to ensure that they either have creditable drug coverage or that they select a Part D option in order to avoid lifetime penalties.

Life Insurance

• If the client is covered by life insurance offered by their employer, have the coverage options or limits changed?
• For those who own permanent life insurance, it’s a good idea to review the policy including how any dividends are being applied and how the policy is performing.
• For those who own a term policy, review the time left on the policy’s term and consider whether the client’s needs have changed.

Disability Insurance

• If the client’s employer provides disability insurance, have there been any changes to this coverage and is it adequate?
• Do the client’s other sources of disability income, such as Social Security and their own personal savings, sufficiently cover their potential needs, or should they consider additional insurance?

Long-Term Care Insurance

• Does the client’s policy have appropriate covered services, benefit amounts, and riders, such as inflation protection?
• Has the client experienced a large increase in their premium? If so, it might make sense to review other options.

This is a comprehensive checklist of the types of issues that advisors should be discussing with their clients when reviewing their life and health insurance policies. These types of policies play a key part in their overall financial plan and in protecting their family’s assets.

Click here for a client-facing email template.