Why Regular Life Insurance Policy Reviews Matter
Life insurance is one of the most important financial tools you can have. It gives you peace of mind knowing your loved ones will be protected if something happens to you. But life doesn’t stand still. Careers grow, families change, and financial needs evolve. That’s why your life insurance policy should never be something you “set and forget.” Reviewing it regularly keeps it aligned with your current goals and circumstances.
So how often should you review your life insurance policy? The simple answer: at least once a year and whenever a major life event occurs. Let’s take a closer look at why these reviews matter and what you should keep in mind when updating your policy.
Why Regular Reviews Are Important
Life insurance is designed to fit your life. But if your life changes and your policy doesn’t, gaps can form. Reviewing your policy helps you:
- Confirm that your coverage amount is still appropriate
- Update your list of beneficiaries
- Reassess the type of policy you have and whether it still works for your needs
- Identify opportunities to save money on life insurance with better options
Without periodic reviews, you could end up with too little coverage, outdated beneficiaries, or a policy that no longer supports your financial plan.
Life Happens: Times to Revisit Your Policy
While an annual review is a great habit, certain milestones are especially important times to revisit your coverage:
Marriage or Divorce
Getting married often means combining financial responsibilities, and your spouse may depend on your income. A divorce, on the other hand, may mean adjusting beneficiaries or even the amount of coverage you carry.
Birth or Adoption of a Child
Children bring both joy and new financial responsibilities. From daily care to future education costs, many parents find they need more coverage once they expand their family.
Buying a Home
If you’ve purchased a home, your mortgage is likely one of your largest financial obligations. Updating your life insurance can help protect your family from carrying that debt on their own.
Career Changes
A new job, a promotion, or starting your own business can significantly impact your income and financial goals. Your coverage should reflect those changes.
Loss of a Loved One
If a spouse, parent, or dependent passes away, your financial responsibilities and beneficiaries may change. Adjusting your policy keeps it relevant to your current situation.
Retirement Planning
As you get closer to retirement, your financial goals may shift from income replacement to legacy planning. Reviewing your policy helps you align it with your long-term plans.
Reviewing Your Beneficiaries
Beneficiaries on insurance policies are occasionally overlooked, but keeping them current is critical. Life events like marriage, divorce, or the birth of children should prompt an update. Without it, your policy might direct benefits to someone you no longer intend. A quick review each year keeps your beneficiaries aligned with your wishes.
What to Look for During a Review
When sitting down with your life insurance policy, here are some key areas to focus on:
- Coverage Amount: Does the death benefit cover current debts, living expenses, and future needs like education or retirement savings for your family?
- Policy Type: Are you holding a term policy that is close to expiration? Is a permanent policy still the right fit for your goals?
- Premiums: Are your premiums still affordable given your current budget?
- Beneficiaries: Do the names and allocations reflect your current intentions?
- Additional Riders: Do you need to add or remove riders, such as coverage for children or disability protection?
How Often Is “Often Enough”?
While annual reviews are recommended, a good rule of thumb is to check your policy whenever a significant life event occurs. These checkpoints don’t take much time, but they make a world of difference in keeping your coverage relevant.
Think of it like a financial health checkup. Just as you visit your doctor for preventive care, reviewing your life insurance keeps your protection strong before problems arise.
Schedule a Personalized Policy Review
Ready to review your coverage? You can schedule a one-on-one conversation with one of our licensed experts here to review your current policy. Our team is salary-based with no commissions, so you can feel confident knowing their advice is focused on what’s best for you and your family—not on meeting a sales quota.
Try Our Online Life Insurance Calculator
Looking to purchase a new policy all together? Everyday Life Insurance is here to make the process simple—check out our online Life Insurance Calculator. Whether you’re adjusting coverage, updating beneficiaries, or exploring new options, taking the time to review your policy is one of the most meaningful steps you can take to protect your family’s future.
