As 2026 comes to a close, now is the perfect time to reconnect with clients and ensure their life insurance policies and annuity contracts still align with their needs and financial goals.
A recent CBS News article highlights the importance of reevaluating life insurance coverage heading into 2027, especially as changing financial circumstances and economic conditions may impact clients’ protection needs.
Here are six important topics to cover in your year-end client conversations.
1. Beneficiary Designations
Encourage clients to review their primary and contingent beneficiaries, especially following a marriage, divorce, birth, or death in the family.
Agent Reminder: Naming a minor, trust, estate, or beneficiary residing outside the U.S. may require additional documentation and could result in expenses or payment delays.
2. Power of Attorney (POA)
Does your client have an up-to-date POA? Encourage them to ensure someone they trust has the appropriate authority to manage financial matters if needed.
Agent Reminder: A POA doesn’t automatically authorize all life insurance or annuity transactions. Specific authority and additional documentation may be required.
3. Annuity Distribution Requirements
Review applicable Required Minimum Distributions (RMDs) and distribution obligations for inherited annuities before year-end.
Agent Reminder: Requirements and deadlines may differ for contract owners and beneficiaries. Encourage clients to consult their tax advisor to understand their options and obligations.
4. Contact Information and Account Details
Confirm clients’ addresses, phone numbers, email addresses, and banking information for recurring annuity payments are current to help prevent communication and payment delays.
5. Policy and Contract Review
Have your clients’ financial needs changed? Review life insurance coverage amounts, premium obligations, available living benefits, and annuity income options to ensure their policies and contracts still meet their goals.
As CBS News points out, rising living costs and changing financial priorities may also warrant a closer look at whether existing coverage amounts and policy types remain appropriate.
Agent Reminder: Help clients understand available Accelerated Benefit Riders (ABRs), eligibility requirements, and applicable provisions. Accessing these benefits may reduce the death benefit available to beneficiaries.
6. Planning for Loved Ones
Would your clients’ families know where to turn if something happened? Encourage clients to share where important policy and contract documents are kept and whom to contact when benefits are needed.
Make the Year-End Review Count
A thoughtful year-end review can help identify potential issues, strengthen client relationships, and ensure clients’ plans continue to work as intended.
Take advantage of these conversations to help your clients and their loved ones prepare for 2027 and beyond.
Additional Resources
- Naming a Minor as a Beneficiary: Helping Families Plan Ahead
- Life Insurance Awareness Month: Start With the Beneficiary Conversation
- Foreign Beneficiary Claims: What Agents Need to Know
- Divorce and Life Insurance: What Agents Need to Know
- Power of Attorney: Helping Clients Prepare for the Unexpected
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