Protect Your Wealth: Keeping Insurance Up-to-Date

In today’s dynamic financial and regulatory environment, insurance is more than a safeguard—it’s a strategic tool for preserving wealth, ensuring business continuity, and securing your family’s future. For high-net-worth individuals and business owners, outdated policies can create vulnerabilities that disrupt long-term plans. This article offers a refined approach to insurance reviews, integrating recent policy changes to help you stay ahead of risk.

A strong insurance portfolio protects against unexpected disasters and financial disruptions. Professionally designed wealth plans often include life insurance, long-term care policies, and other risk mitigation strategies. These tools can be used to:

Under most policies, insurance money may be used to cover a wide range of financial burdens. Common uses include:

• Paying estate taxes
• Providing retirement income
• Replacing lost income
• Covering funeral expenses
• Paying debts
• Protecting business owners
• Paying life expenses
• Funding buy/sell agreements
  
• Support daily living expenses

An estimated 100 million Americans are uninsured or underinsured, with many feeling overwhelmed by the insurance process. And, even for those who have sufficient coverage, insurance policies may not provide their intended protection. Comerica Wealth Management’s team of experienced wealth professionals provides a comprehensive approach you can use to review your insurance needs and plan for the future.

Why are regular insurance reviews important?
Insurance is not a one-time decision. Your life, business, and financial goals evolve—and your coverage should evolve with them.

For example, imagine you receive an inheritance. This sudden influx of wealth can reduce your debt levels, add flexibility and improve your family’s financial position. But if you don’t update your insurance alongside this significant event, you may have coverage you don’t need or new gaps that aren’t insured.

To keep your insurance policies aligned and updated, consider these factors:

Life events
Increases in net worth, family changes, retirement, or business transitions all impact your insurance needs.

External impacts
Factors outside your control should also be considered such as market volatility or changes to the tax code may impact your need for insurance or the policy performance.

Periodic reviews
Even when life feels stable, reviewing your policies is prudent. The review process can help uncover important financial questions or policy updates that need to be taken into consideration. Many individuals review their insurance policies once a year.

Essential steps to assess and update your insurance coverage
It’s time to review your insurance policy. 

Where should you start? How can you make sure every contingency is covered? The answer to these questions depends on your personal circumstances – that’s why many individuals choose to work with an experienced team of professionals - like Comerica Wealth Management. But if you’re choosing to conduct a self-review, these steps will help ensure your insurance strategy remains aligned with your goals:

Define your goals and objectives
Before diving into the details of your insurance policies, it's important to establish a clear understanding of your overall financial goals and personal objectives. This foundational step aligns coverage with your current needs and future aspirations. By clearly defining your goals and objectives, you'll be better equipped to make informed decisions about your insurance coverage.

Ask yourself these questions to start:

• What am I trying to accomplish?
• Who am I trying to protect?
• What coverage do I need and will that change over time?
• Is my need temporary or permanent?
• What is my budget?

Note any significant life events
Significant life events often have a major impact on your insurance needs. Take stock of any recent life changes that might affect your insurance policies. This proactive approach ensures your coverage remains relevant and sufficient to protect you and your loved ones during this new life stage.

Common life events include:

• Marriage or divorce
• Birth or adoption of children
• Career changes or promotions
• Real estate transactions
• Inheritance or liquidity events
• Retirement or business sale
• Starting a new business or adding a partners

Review your existing policy
Does your existing policy still cover your financial needs? To answer this question, start by looking at the coverage, terms and conditions to identify any gaps or areas for improvement, like:

• Are coverage levels still appropriate?
• Are terms and conditions aligned with your needs?
• Are your policy riders and features still providing value?
• Who is the policy owner, insured and listed beneficiaries?

Then, look for new features or riders that might enhance your policy's benefits and consider how future life events could affect your coverage. Request an in-force illustration from your life insurance carrier to evaluate its performance. Finally, review your primary and contingent beneficiaries to ensure they are up to date. Many people overlook this step, which can cause significant issues when the proceeds are distributed.

Compare policy options
The insurance market is constantly evolving. If your existing policy doesn’t meet your needs, it’s likely there’s a policy option out there that will. By exploring insurance providers and products, you can identify policies that offer better coverage, lower premiums or more favorable terms.

Comparing policy options also allows you to make informed decisions, ensuring you get the best value and protection for your needs. This step can help you uncover new benefits or features that provide enhanced security for your financial future such as:

• Better coverage
• Lower premiums
• More favorable terms
• Enhanced flexibility or tax efficiency

Update your planning documents
Lastly, it’s important to update your planning documents. Regular updates help to prevent potential conflicts and ensure that your assets and benefits are distributed according to your wishes. This step provides peace of mind, knowing that your plans are current and comprehensive, safeguarding your family's future.

Update documents such as:

• Beneficiary designations
• Wills and trusts
• Power of attorney
• Advanced directives
• Business documents
• Buy/sell agreements
  

Ready to review your insurance needs?
Insurance is a dynamic component of your financial strategy—one that must evolve alongside your life, business, and legacy goals. With tax changes and product updates in 2025, now is the time to ensure your coverage reflects your current needs and future aspirations. A thoughtful, strategic review can uncover opportunities to optimize protection, reduce risk, and strengthen your overall wealth plan.

Take the next step in securing your financial future. Connect with your Relationship Manager or with an Comerica Advisor to schedule a personalized insurance review and explore solutions tailored to your goals.