How often should I review my life insurance?

Like other aspects of your financial well-being, you don’t want to take a “set it and forget it” approach to your life insurance policy.

As a general rule of thumb, it’s a good idea to review your life insurance with your life insurance agent at least once a year. The life insurance review is a way to make sure that you have the right kind and level of coverage to protect your loved ones. And if you have permanent life insurance, it’s a good opportunity to make sure it’s helping you meet your overall financial goals.

A life insurance review is also the perfect time to learn about any new coverage options your insurer recently announced; to discuss any concerns you have about the rate you’re paying; and to take action before a policy expires.

Your life insurance often needs to change as your life changes. That’s why you’ll want to schedule a life insurance review after a major life event. Life events that should trigger a review of life insurance include:
  • Getting married
  • Getting divorced
  • Buying a house
  • Having or adopting a baby
  • Accepting a new job
  • Receiving a substantial raise or promotion
  • Taking out a mortgage or other loan
  • Refinancing your home
  • Paying off your mortgage
  • Buying a business
  • Selling a business
  • Receiving an inheritance
  • Having a loved one require long-term care
  • Becoming disabled
  • Becoming an empty nester
  • Experiencing a death in the family
  • Retiring

An often overlooked reason for scheduling a life insurance review is experiencing a change in health. A turn for the worse is often a reason to increase your coverage or to examine additional coverage opportunities. (Just know that a new policy may cost more if you’re facing a health challenge.) That said, rest assured that you’ll be able to continue the coverage you already have in place regardless of your health.

On the flip side, an improved health outlook from losing weight, exercising more, quitting smoking and getting control over an issue like high blood pressure might help you get a better rate. The same applies if you recently quit a dangerous hobby like mountain climbing or left a risky job like being a roofer.

Work With a Life Insurance Agent

One of the best ways to make sure your loved ones are fully protected is to work with a licensed insurance agent who can walk you through the entire process. If you don’t have an agent or advisor to work with, check out our agent locator. You can also work directly with an insurance company. Here are company partners that support our non-profit mission and can assist you in getting coverage directly or through one of their agents or advisors. The key is to start today.

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