One of the most valuable services we provide for clients is something very simple:

Reviewing the life insurance policy they already have.

Over the years I’ve met many people who purchased life insurance from well-known companies or organizations. These companies are legitimate and have helped millions of families.

But what many clients discover during a review is that the policy they own doesn’t always work the way they thought it did.

Sometimes the coverage is temporary.
Sometimes the benefit doesn’t fully pay in the first few years.
Sometimes the premiums increase over time.

None of these things automatically make a policy “bad.” But they do make it important to understand exactly what you have.

Here are some examples we commonly review with clients.

Lincoln Heritage

Lincoln Heritage focuses heavily on final expense whole life insurance.

Many of their policies are structured as graded death benefit policies, meaning:

• The full death benefit typically does not pay during the first two years
• The full benefit begins after that waiting period

In addition, their traditional whole life policies are often 15–30% more expensive than comparable policies offered by other carriers.

For some clients this coverage still works, especially if health conditions limit their options. But it’s always wise to compare and understand your options.

AARP Life Insurance

Many people feel comfortable buying coverage through AARP because it is a familiar and trusted name.

However, many AARP policies are 5-year renewable term policies, which means:

• The price increases every 5 years
• Coverage expires at age 80
• If the policy ends, the premiums paid are not returned

For someone who wants lifetime protection, this structure may not be ideal.

Globe Life

Globe Life is another widely recognized company.

Many of their policies are also 5-year renewable term policies, which means:

• The premiums increase every 5 years
• Coverage can become very expensive later in life
• The policy is still temporary insurance

This structure may work short term, but many clients are surprised when they see how the cost grows over time.

Colonial Penn

Colonial Penn is widely known for its $9.99 per month television advertisements.

What many people don’t realize is:

• That price often represents about $1,000 of life insurance for someone around age 60
• Their policies typically include a 2-year graded waiting period

This means the full benefit may not be paid during the first two years.

For certain health situations these policies can serve a purpose, but it’s important to understand how much protection you actually have.

Primerica

Primerica is a respected company with a large presence in the industry.

Their focus is primarily on term life insurance, which can be excellent for protecting income during working years.

However, as of today:

• Primerica primarily offers term insurance only
• They do not offer permanent life insurance policies
• Their policies generally do not include living benefits such as critical illness or chronic illness riders

That means if someone suffers a cancer diagnosis, heart attack, or stroke, the policy typically cannot be accessed while the client is still living.

For some people, having coverage that can also provide protection while they are alive may be worth considering.

Now Let’s Talk About Other Common Types of Coverage People Misunderstand

In addition to specific companies, there are also types of life insurance coverage that many people misunderstand.

Bank Life Insurance

Another common misunderstanding occurs when someone says:

“I have life insurance through my bank.”

In almost every case, what the person actually has is accidental death insurance.

This type of coverage usually only pays if the death is caused by an accident, not natural causes such as:

• illness
• heart attack
• stroke
• cancer

While accidental policies can provide some additional protection, they are not a substitute for true life insurance coverage.

Gerber Life Child “Grow-Up Plan”

Gerber Life advertises heavily for their child life insurance policies that promise the coverage will double when the child turns 18.

What many parents don’t realize is that the premium they are paying is already structured to account for that future increase.

In many cases, parents could purchase the same amount of coverage today that the child will receive at age 18, often at a comparable cost.

These policies can still provide value, but it’s important to understand how the numbers actually work.

Life Insurance Through Work

Employer group life insurance is extremely common.

It is often very inexpensive or even free, which makes it a great benefit to have.

However, there is one major limitation:

It usually disappears when you leave your job.

That means:

• It typically does not follow you into retirement
• Coverage may only be 1–2 times your salary
• The policy may not be available when your family actually needs it most

For this reason we usually tell clients:

Take advantage of it, but don’t rely on it.

Universal Life Policies

Universal Life policies can be excellent when designed properly.

However, many clients are unaware that:

• The internal cost of insurance increases over time
• If the policy is not funded properly, the cash value can slowly drain
• Eventually the policy can lapse unexpectedly

Recently we reviewed a policy that had been in force since 1998. After contacting the insurance company, we learned the cash value would run out in just 11 months.

The client had no idea this was happening.

This is why regular policy reviews are essential.

The Big Takeaway

None of the companies mentioned above are bad companies.

In fact, many of them have helped millions of families.

The real issue is that most people simply don’t fully understand the policy they own.

Just like you review:

• your investments
• your taxes
• your retirement plan

…it’s wise to review your life insurance policy as well.

Sometimes the review confirms everything is perfect.

Other times it reveals:

• You may be paying too much
• Your coverage may expire sooner than expected
• There may be better options available today

Either way, knowledge brings peace of mind.

When Was the Last Time You Reviewed Your Policy?

If it’s been more than a few years since someone reviewed your life insurance, it might be worth taking another look.

Sometimes the best financial decision isn’t buying something new.

Sometimes it’s simply making sure what you already have is working the way you think it is.