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The "Facts of Life"

State Insurance Regulators Offer Tips for Consumers

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  • Empty nesters/seniors should evaluate whether they can reduce their life insurance coverage based on such factors as whether their spouse is alive, their home is paid off, their children and/or grandchildren are financially independent or if they anticipate high estate taxes that would be a burden on their heirs. Some older individuals with significant financial assets may choose to keep their life insurance in force because they view insurance as an estate planning tool that enables them to leave their loved ones money that is exempt from income and estate taxes.
  • "All consumers should remember to review their life insurance policy every year before paying their premiums and update it to reflect any major changes in their lives – like marriage, the birth of a child, divorce or the death of a spouse," says Catherine J. Weatherford, NAIC executive vice president and CEO. "Before signing up for any kind of insurance, consumers should check with their state insurance department to make sure the company offering the policy is legitimate, solvent and authorized to do business in their state."

    Acknowledging September as "Life Insurance Awareness Month," the NAIC has assembled useful information about the subject on their consumer education Web site, Insure U.

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