Most policyholders do not realize how much changes from the time they initially purchased their life insurance policy, But as situations change and needs shift, their original policy may not be best suited for them anymore. 

What is a Life Insurance Audit?

A life insurance audit is a comprehensive evaluation of a current life insurance policy to determine if the coverage still matches the policyholders needs. If a life insurance policy isn't reviewed in a timely manner, it's not uncommon for the policy to no longer be suitable and they are not aware. An audit helps to identify changes in:

  • the policyholders needs
  • changes within the industry

The goal of these life insurance audits is ultimately to reduce premiums while increasing coverage specific to your clients needs. When clients first purchase life insurance, they base their plan around assumptions of future needs. As time goes on, those needs may change and therefore should be reflected in their policy. In addition, the industry is consistently improving around the products, pricing and longer life expectancies. Your client's policies should improve alongside of the industry in both benefits and price.

Why is a Life Insurance Audit Important?

Just like any other financial investment, it is important for this asset to be managed. A life insurance audit is intended to identify any areas of improvement and either maintain or improve your client's current policy to match their needs. By analyzing the existing policy, reevaluating products and reviewing current goals, this life insurance audit can improve your client's financial outlook. Oftentimes audits reveal:

  • overpriced premiums
  • better coverage at a lesser price
  • risks of inactive policies
  • better cash accumulation or distribution
  • additional living benefits like critical illness, chronic illness or even LTC benefits

It's an important to explore what your client would like the policy to do with at what is currently available. By searching the market, it's possible to find a policy that can provide either a higher level of cash accumulation, a much higher death benefit, or extremely valuable benefits that older policies may not contain like long-term care or accelerated benefits.

Life Insurance Audit for Your Clients

All agreements need adjustments from time to time in order to get the most out of it. Your life insurance policy should be no different. Allow our team at Advisor's Resource Company to audit your clients current life insurance policies to identify new financial opportunities.


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