Why you should review your life insurance policy annually
When was the last time you reviewed your life insurance policy? Life doesn’t stand still, and neither should your coverage. By reviewing your policy annually, you can make sure it reflects your current needs, priorities, and financial goals.
Major life events and changes in financial status can create gaps in coverage. An annual life insurance policy review helps ensure your loved ones are always protected.
When to review your life insurance policy
Certain milestones should trigger a review of your life insurance policy. Here’s when you should check to ensure your coverage is up to date:
Family changes
Life changes like marriage, divorce, or welcoming a new child can affect your insurance needs:
- Marriage or Divorce: Marriage often introduces shared financial responsibilities, while divorce may require updating beneficiaries.
- Birth or Adoption: Expanding your family means more financial responsibilities, which might call for increased coverage.
- Empty Nest: If your children are now financially independent, you might consider reducing your coverage.
- Caring for Aging Parents: Supporting elderly parents may require additional protection.
Health changes
Your health can impact your insurance needs and premiums:
- Improvement or Decline in Health: Improved health may lower premiums, while a decline may necessitate more coverage.
- Chronic Conditions or Special Needs: Adjustments may be needed to provide long-term financial support for loved ones.
Financial changes
Significant shifts in your financial situation can influence your policy:
- Income Changes: Fluctuations in income might affect your premium affordability or coverage needs.
- New Debts or Debt Payoff: Taking on or eliminating major debts, like a mortgage, should prompt a policy review.
- Inheritance or Financial Windfall: Sudden financial changes might shift your coverage priorities.
How to review your life insurance policy—and why it matters
Reviewing your life insurance policy is an essential step to ensure it continues to meet your family’s needs and financial goals. An annual review, especially at the start of a new year, can provide peace of mind and confidence that your loved ones are financially secure. Here’s a step-by-step guide to help you stay on track:
- Gather Your Policy Documents
Collect your policy details, statements, and any rider information to get a full picture of your coverage. - Assess Your Current Situation
Reflect on changes in your family, finances, or health since you took out the policy. Life changes, like a new baby, a new home, or a career shift, may mean it’s time to adjust your coverage. - Evaluate Coverage and Beneficiaries
Ensure your coverage amount is still sufficient and confirm that your beneficiaries are up to date. - Consider Riders
Explore options like our Accidental Death Benefit or Waiver of Premium Riders that can enhance your policy’s protection. - Consult with an agent
A licensed agent can help identify gaps, recommend adjustments, and ensure your policy aligns with your goals. Many insurers, including SBLI, offer complimentary policy reviews and expert guidance.
Regularly reviewing your life insurance policy is a simple but powerful way to adapt to life’s changes and stay on top of your family’s financial wellness. Start your year with the confidence that comes from knowing your loved ones are protected.
Schedule your life insurance policy review today
Your life insurance policy should grow and adapt with you. If life has changed in the past year, now is the perfect time to review your coverage.
Connect with one of SBLI’s licensed agents today at 800-650-4391 to schedule your personalized policy review. We’re here to help you secure your family’s financial future with confidence and ease.
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