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Just as you’d go to the doctor for an annual checkup or perform routine maintenance on your vehicle, having an annual insurance policy review is just as important. This review, which includes a needs analysis and a look at your life insurance needs, can confirm that your current coverage is sufficient for your needs and budget—or it may reveal gaps, allowing you to take action to remedy those.
Reviewing your insurance coverage at least once a year is an excellent idea to help ensure that you, your family and your belongings are all protected. It’s also a good time to make sure that your life insurance adequately protects your family in the event of your death.
You’ll also want to review your insurance coverage when you’ve made a big purchase or experienced a life change, such as:
These are all considered life-changing events, and it’s crucial to make sure your coverage is up to date and provides enough protection for the people and things that matter most to you.
Simply put: An annual insurance review is a thorough look at your insurance coverage. You’ll want to look extensively at all your insurance policies protecting your family members, home, vehicles and other valuables. It’s a good idea to enlist the help and knowledge of an experienced insurance agent who can provide valuable guidance on which coverages are best for your unique situation.
An annual insurance review is always a good opportunity to sit down with your insurance agent to make sure you understand your current coverage and the exclusions within your policies. It’s an excellent time to verify that you have adequate coverage and limits—and a great time to look ahead and plan for life changes. It’s an opportunity to see if you are eligible for any discounts, too.
Is life insurance through your employer enough?
Learn moreEvaluating life insurance needs are a critical component of your annual review. Life insurance products have evolved significantly over the last decade, and more and more options are available to fit unique circumstances. Not only are people living longer, but more-advanced medical testing and better and more-accurate medical diagnoses mean people are staying healthier longer. Given these changes, taking advantage of lower premiums and buying a less-expensive policy may be possible, potentially saving you money.
Remember that life insurance payouts are generally not taxable. This means that life insurance can be a practical way to provide a death benefit and monetary support to loved ones after you’ve passed.
You’ll also want to check that your life insurance beneficiary designations are up to date. When you first bought your policy, you probably named your beneficiaries. But there are circumstances and major life events that warrant reviewing your beneficiary selections and making changes if needed:
Some people underestimate the amount of life insurance they’ll need. This is among one of the largest financial mistakes you can make. Remember that most people’s incomes will increase over the years, but so will their expenses. While it’s difficult to pinpoint how much your costs may increase over time, a cushion can help your family members maintain their lifestyle and can provide the peace of mind that comes from knowing that you’ll be leaving them in a solid financial position after you’re gone.
As part of your annual review, your AAA insurance agent can use a needs analysis to identify gaps in coverage for your car, life, home, renters, motorcycle, ATV, RV, boat or flood insurance needs. A needs analysis can help identify where additional insurance coverage is needed to make sure that your family, house and material belongings are fully protected and that your coverage aligns with your current needs.
During a needs analysis, your agent will ask questions about your salary, your spouse’s annual income, your retirement savings plan and (if you have school-aged children) your college fund needs. They’ll look at your debt—house, car, student loans and credit cards—and any other long-term expenses to create a recommendation tailored to you and your unique financial situation.
With answers to these difficult questions, an agent can put together an estimate of all of your insurance coverage needs to ensure you, your family and your belongings are all protected.
A needs analysis calculates how much insurance coverage an individual or family requires. A good needs analysis takes into consideration upcoming life events that could affect your immediate, ongoing and expected expenses.
Did you remodel a bathroom or add on to your home? Home renovations like these affect your home’s appraisal value and can cause a gap in homeowners insurance coverage. Perhaps you have a new teenage driver in your family? Make sure your auto insurance adequately covers your child during this all-important coming-of-age time.
If you’ve recently purchased a home, you may need to update your life insurance policy so your family can continue to pay the mortgage and remain in your house without your income. You might also want to check your existing policy if your salary changes or if you get a new job—these situations will also affect your and your family’s financial standing.
Overall, the goal of a needs analysis is to confirm that you’re not overpaying or underpaying on your premiums and that you’re adequately protected.
Sometimes a needs analysis will help reduce the cost of your insurance. For instance, if your children are finished with college, you might be able to reduce some of your life insurance coverage. As with all insurance, your needs change with age—and your insurance agent can help you navigate what’s right for you and tailor your policies to fit your unique needs.
Estimate how much life insurance you’ll need.
Calculate todayAAA takes pride in helping you protect your peace of mind. An experienced AAA agent can help you navigate these insurance questions and help you identify the right policies and coverage for you. Your coverage needs are as unique as you are, and your AAA agent is standing by today to provide you with an annual insurance policy review and needs analysis to aid you with all your insurance needs.
Insurance needs
Connect with a AAA agent for help.
This information is being provided for general informational purposes only. The Auto Club Group does not assume any liability in connection with providing this information.
Life insurance underwritten and annuities offered by AAA Life Insurance Company, Livonia, Michigan. AAA Life Insurance Company is licensed in all states except NY. CA Certificate of Authority #07861. Products and their features may not be available in all states.
AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract.
This is a summary of product provisions and does not contain all of the benefits and exclusions. For complete terms of the insurance coverage or annuity, please contact your agent or refer to the policy/contract.
Annuities - LA
Annuities are not short-term products. During the surrender charge period, withdrawals exceeding 10% will be subject to a surrender charge that may be higher than fees associated with other types of financial products and may reduce principal. Withdrawals prior to 59½ may be subject to IRS penalties, separate from the annuity’s schedule of surrender charges.
EliteGuarantee Deferred Annuity - LAEG Contract Form Series: ICC11-4101/DA-4101 (In OR: ICC11-4101)
Platinum Bonus Annuity - LAPB Contract Form Series: ICC11-4111/DA-4111 (In OR: ICC11-4111)
Guaranteed Income Annuity - LAGI Contract Form Series: ICC14-4120/SPIA-4120 (In OR: ICC14-4120)
The payout amount you will receive is based on your individual circumstances, the options you select at the time of application and your initial premium payment.
Term Life Insurance - LT
Premiums are guaranteed. They are level for the term period and increase annually thereafter. Any sample premiums are examples only and may vary based on your personal health history and underwriting guidelines. The answers provided to the health questions are used to determine eligibility for coverage. Not all applicants will qualify. Product and its features may not be available in all states. Coverage ends at age 95.
If insured is diagnosed with a terminal illness that will cause death in 12 mos. or less, up to 50% of the total benefit can be applied for, and used as insured chooses. The remaining benefit payable at death will be reduced by the Accelerated Death Benefit paid and any accrued and unpaid interest (8% annual interest rate applies). Receipt of Accelerated Death Benefits may affect eligibility for public assistance programs and may be taxable. Please consult the appropriate social service agency and seek the advice of tax counsel before applying for these funds. The Accelerated Death Benefit is not available if the terminal illness results from an intentionally self-inflicted injury. This benefit may not be available in all states.
ExpressTerm - LTE Policy Form Series: ICC19-1601/1601 (In OR: 1CC19-1601)
Traditional Term - LTT Policy Form Series: ICC19-1801/1801 (In OR: ICC19-1801)
Group Direct Term Policy Form Series: GT8200
Individual Direct Term Policy Form Series: ICC16-1501
Universal Life Insurance – LULG
Health history, underwriting guidelines and the answers provided to health questions are used to determine approval for coverage. Not all applicants will qualify. Rates may vary.
Lifetime Universal Life Insurance - LUL Health history, underwriting guidelines and the answers provided to health questions are used to determine approval for coverage. Not all applicants will qualify. Rates may vary.
Policy Form Series: ICC19-4701/4701 (In OR: ICC19-4701)
If insured is diagnosed with a terminal illness that will cause death in 12 mos. or less, up to 50% of the total benefit can be applied for, and used as insured chooses. The remaining benefit payable at death will be reduced by the Accelerated Death Benefit paid and any accrued and unpaid interest (7% annual interest rate applies). Receipt of Accelerated Death Benefits may affect eligibility for public assistance programs and may be taxable. Please consult the appropriate social service agency and seek the advice of tax counsel before applying for these funds. The Accelerated Death Benefit is not available if the terminal illness results from an intentionally self-inflicted injury. This benefit may not be available in all states.
Accumulator Universal Life Insurance - LULA Health history, underwriting guidelines and the answers provided to health questions are used to determine approval for coverage. Not all applicants will qualify. Rates may vary.
Policy Form Series: ICC19-3701/3701 (In OR: ICC19-3701)
If insured is diagnosed with a terminal illness that will cause death in 12 mos. or less, up to 50% of the total benefit can be applied for, and used as insured chooses. The remaining benefit payable at death will be reduced by the Accelerated Death Benefit paid and any accrued and unpaid interest (5% annual interest rate applies). Receipt of Accelerated Death Benefits may affect eligibility for public assistance programs and may be taxable. Please consult the appropriate social service agency and seek the advice of tax counsel before applying for these funds. The Accelerated Death Benefit is not available if the terminal illness results from an intentionally self-inflicted injury. This benefit may not be available in all states.
Whole Life Insurance
Whole Life Insurance (for coverage amounts of $30,000 or more) - LWL Policy Form Series: ICC18-5601/5601 (In OR: ICC18-5601)
Health history, underwriting guidelines and the answers provided to health questions are used to determine approval for coverage. Not all applicants will qualify. Rates may vary.
If insured is diagnosed with a terminal illness that will cause death in 12 mos. or less, up to 50% of the total benefit can be applied for, and used as insured chooses. The remaining benefit payable at death will be reduced by the Accelerated Death Benefit paid and any accrued and unpaid interest (8% annual interest rate applies). Receipt of Accelerated Death Benefits may affect eligibility for public assistance programs and may be taxable. Please consult the appropriate social service agency and seek the advice of tax counsel before applying for these funds. The Accelerated Death Benefit is not available if the terminal illness results from an intentionally self-inflicted injury. This benefit may not be available in all states.
Rapid Issue Whole Life Insurance (for coverage amounts of $25,000 or less) - LRIWL Policy Form Series ICC20-7001/7001 (In OR: ICC20-7001)
Responses to the application will be used to determine approval for coverage. Not all applicants will qualify.
This Whole Life policy is referred to as graded benefit whole life insurance. If you suffer a non-accidental death within the first two years of coverage, your beneficiaries will get 100% of the base premiums you paid, plus 35%. After two years, the total amount of your coverage is paid for death due to any cause.
After the first two years of coverage, if insured is diagnosed with a terminal illness that will cause death in 12 mos. or less, up to 50% of the total benefit can be applied for, and used as insured chooses. The remaining benefit payable at death will be reduced by the Accelerated Death Benefit paid and any accrued and unpaid interest (8% annual interest rate applies). Receipt of Accelerated Death Benefits may affect eligibility for public assistance programs and may be taxable. Please consult the appropriate social service agency and seek the advice of tax counsel before applying for these funds. The Accelerated Death Benefit is not available if the terminal illness results from an intentionally self-inflicted injury. This benefit may not be available in all states.
Guaranteed Issue Whole Life Insurance - LGIWL Policy Form Series: ICC16-6301/GWL6301 (In OR: ICC16-6301)
The maximum amount of Guaranteed Issue Whole Life insurance coverage per insured is $25,000.00. Subject to age requirements and policy limit restrictions.
This Guaranteed Issue Whole Life policy is referred to as graded benefit whole life insurance. If you suffer a non-accidental death within the first two years of coverage, your beneficiaries will get 100% of the level monthly premiums you paid, plus 30%. After two years, the total amount of your coverage is paid for death due to any cause.
If you are a California resident 65 years of age or older, we are required to advise you of the following. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund the purchase of this product may have tax consequences, early withdrawal penalties, or other costs or penalties as a result of the sale or liquidation. You may wish to consult independent legal or financial advice before selling or liquidating any assets and prior to the purchase of any life or annuity products being solicited, offered for sale, or sold
ALAN-29546-624-XX
