Life Insurance Review

As your life changes, it is important to check that your life insurance policy continues to cover your needs.

No matter what stage of life you’re in, purchasing a life insurance policy is a great idea. If you’ve already made the smart decision to buy life insurance, the amount and type of coverage that you currently have might be perfectly adequate, but as circumstances in your life change, so may your insurance needs.

What Is an Insurance Review?

An insurance review is an opportunity to look at changes that have happened in your life and to check that your policy still covers your needs. You may prefer to speak with your licensed insurance professional or use a life insurance policy review checklist to help you.

How Often Should Insurance Be Reviewed?

The insurance educators at Life Happens suggest that policy owners should evaluate their coverage annually or anytime a major life event happens to determine if changes need to be made. Being proactive in this area can ensure that your loved ones are properly taken care of in the future.

Income Changes

Most people’s annual income goes up as they progress through their careers. If the amount of life insurance you took out a few years ago was based on a previous income level, you might want to reexamine your policy. Additionally, if your income changes due to an inheritance or a financial lifestyle change, it is important to make sure that your life policy will adequately protect your family or loved ones.

Marriage or Divorce

When a couple marries or divorces, many changes occur. In most cases, if you purchased a life insurance policy before the change in your marital status, the coverage level will most likely need to be adjusted. You might also need to consider changing a beneficiary or contingent beneficiary on the policy.

New Home

For a majority of people, buying a home is the largest single financial investment they will make in their lifetimes. Ensuring that the amount of life insurance that you have is adequate after buying a house will play a big part in protecting your loved ones’ ability to remain in the home well into the future.

Starting a Family

When it comes to life insurance, there are few events that can affect your need for it more than starting a family. You’ll want to ensure that your growing family’s financial needs are taken care of in the future with respect to housing and living expenses. For personalized guidance, reach out to The Policy Shop. Our experts are here to help you make the best decisions for your unique situation.