Many clients purchase a life insurance policy and let it sit for the rest of their lives, unaware that the policy may need to be updated if their lifestyles or financial goals change. If you’re new to the industry, what follows is a time-tested outline for conducting an annual life insurance review along with tips to make the process as smooth as possible for you and your clients.
Why an Annual Review? Annual life insurance reviews not only allow you to provide up-to-date financial strategies for your clients, but they also can help grow your business by demonstrating proactive care for their financial wellbeing. You’re not a set-it-and-forget-it financial professional. You care! And these meetings can help you strengthen relationships with clients, showcase your life insurance expertise, and increase the potential for positive reviews and referrals. |
What to Include Start by evaluating your client’s current policy in relation to their present circumstances and future needs. The current policy may meet those needs. You may then want to compare the client's policy with newer products, focusing on opportunities to reduce premiums, and appraising whether their death benefit is still appropriate for their situation. Take time to review additional benefits, such as cash value, add-on coverage, or riders that may suit your client’s needs. |
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“Convenience and organization are critical to conducting stress‑free annual reviews.” |
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In some cases, changing circumstances may make the existing policy more expensive or less beneficial for your client, such as when they’ve experienced a decline in their health. This may open the door for you to discuss conversion opportunities. In other cases, it may be in the clients' best interest to purchase an additional life insurance policy to address any coverage gaps. Use all the information at your disposal to look for potential strategies that address the complexities of your client’s circumstances.
Tips for Making Reviews Convenient and Stress-Free Convenience and organization are critical to conducting stress-free annual reviews. Here are some tips for doing so:
1. Be prepared.Keep your discussions on track to address everything in a timely manner. Set aside time to discuss the highest priorities, such as policy details, features, life changes that may affect the policy, or any gaps in coverage.
Before the appointment, organize your information. It may help to have a cheat sheet that includes:
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Type of life insurance, carrier name, and policy number.
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Date issued.
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Premium information.
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Names of the insured and beneficiaries.
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List of features/benefits, how to qualify for them, and how they work.
With practice, you’ll develop a flow that helps you transition smoothly to different topics. For example, you might begin by reviewing policy details, then move to lifestyle changes and financial goals before closing with a brief look at new products that might fit the client’s updated plan. This process should keep appointments simple while tailoring them to each client’s needs.
2. Keep up with your clients' life changes. Whether it’s the birth of a child or grandchild, marriage, divorce, or significant health change, major life events may affect your client’s recommended policy type, death benefit amount, or add-on coverage and riders. Therefore, it’s vital to keep up with your clients' lives.
In some cases, you might get a hint that a change is upcoming. For example, your client might briefly mention that their daughter is getting married or expecting a baby. Even if no immediate policy change is needed, it can be helpful to note the upcoming change for your next review. As an added bonus, independently remembering and asking about your clients’ lives can strengthen trust in your working relationship by demonstrating care outside the context of selling.
3. Ensure financial goals stay aligned with coverage. Your client’s life insurance policy should fit seamlessly into the rest of their financial plan. Conduct a quick assessment of their short- and long-term goals and financial needs, as well as recent changes to their investments, income, and expenses.
Try to find more affordable coverage that still offers the same benefits or compare different types of insurance that may better suit your client’s investment goals. For example, if they have a term life insurance policy but want to begin building cash value, this could be an opportunity to suggest shifting to a permanent life insurance policy that includes different investment options. The goal is to secure the most beneficial policies for your clients at a price that fits within their current budgets. |
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4. Provide helpful advice and educational resources.Sharing knowledge is an excellent way to build your reputation and cultivate trust with your clients. You may lead with some general life insurance education about the various types of coverage, investment options, and the benefits of different policies based on their specific financial situations. |
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Staying up to date with economic events also can enable you to offer more specific advice based on current market conditions and forecasts. Staying on top of what’s new and what’s next may help lead to better recommendations for your clients' insurance strategies and, as a result, more satisfied clients.
5. Use automated scheduling tools and reminders. A reliable scheduling tool can help ensure annual reviews are performed in a timely manner. Rather than calling a few weeks before the client’s annual review is due, you can simply schedule the appointment well in advance. Tying review requests to annual events such as birthdays (or half‑birthdays) can provide a clear, repeatable trigger and make outreach feel personal rather than sales‑driven. It also can be helpful to have a scheduling tool that also automates reminders for both you and your client. Make sure to keep client contact information current so your email or text reminders are received by all parties leading up to the appointment.
It also can be helpful to have a scheduling tool that also automates reminders for both you and your client. Make sure to keep client contact information current so your email or text reminders are received by all parties leading up to the appointment.
Take Your Reviews to the Next Level
By using these tips, you can begin to build a system that fosters strong relationships with your clients and establishes a track record of success. Staying organized, client-focused, and processoriented can help you conduct effective annual reviews that can result in satisfied clients who return year after year. |
