A Guide to Conducting Annual Reviews for New Financial Professionals

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:

• Type of life insurance, carrier name, and policy number.
• Date issued.
• Premium information.
• Names of the insured and beneficiaries.
• 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.