The Importance of Holding Annual Financial Reviews

This year has underlined the importance of annual financial reviews like never before. Think of how much has changed since January and how essential it has been to be as protected as possible in the face of the unpredictable. However, sometimes panic can cause clients to surrender their policies precisely when they need them most. As their finances get tighter, they may drop policies to trim down on their monthly payments when, in reality, a public health crisis is exactly when they need coverage the most. Diligent annual reviews can serve to remind them of why they got coverage in the first place and ensure that they are in the hands of an insurance expert with their best interest in mind.

How Annual Financial Reviews Help Your Clients

There is a common saying: “The best policy is the one that is in force when you need to file a claim.” As long as your client is covered, they ought to rest easy knowing they will be protected from catastrophe. An annual financial review is your chance to remind them that you are looking out for their best interest and that they remain protected in the face of uncertainty.

Below, we list some of the main reasons to hold an annual review:

An annual review reminds your client why their policy is so important.
  • Refresh Your Client’s Memory

We tend to forget how important our income is until it’s no longer there. An annual review can serve as a reminder to your clients as to why they got the policy in the first place: for their spouse, their kids, their grandkids, and their family's financial security.

  • Assess Changes to Their Needs

Premium amounts will vary based on factors like age and lifestyle. An annual review is a chance to adjust a policy based on your client’s situation, potentially lowering their rates if they have recently recovered from an illness, stopped smoking cigarettes, or found a once-chronic issue has receded.

  • Allow Increases in Coverage

Some clients may want to increase their coverage in light of recent events or life changes. This can be especially true if they have recently known a friend or family member who has benefitted from a policy during the pandemic or other world events.

  • Discover Enhancements to Products

Clients probably will not know about any new products or extra benefits that have been rolled out over the year. Presenting them with all their options prevents them from missing out on helpful features like living benefits.

  • Stay Trusted and Helpful

Communicating well with your clients is the highest priority, especially during uncertain times. You are the expert, after all, and it will put them at ease to know they are getting the most out of what is available in terms of financial protection. Simply by checking in, you will foster their trust and satisfaction. An annual financial review is a built-in chance to let them know that you are taking care of their needs.

Annual financial reviews can transform potential policy lapses into satisfied customers, and possibly even new policies. They are the simplest way to provide great customer service and ensure your client base is happy with you as their go-to expert in insurance. At least once a year, remind them why they wanted to preserve their legacy in the first place — for financial security and peace of mind.

Check out our other posts about death benefits and the power of indexing.

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