Important Facts

When to Review Your Life Insurance Policy

This article addresses the need to review your life insurance policy on an annual basis or when certain life events occur and shouldn't wait until your yearly review.

How Often Should I Review My Life Insurance Policy?

We all lead such busy lives that it's not always easy to fit in yet another task. However, when it comes to your life insurance, it's important to schedule the time to review your coverage with your agent or company representative on a regular basis. But how often and when?

The National Association of Insurance Commissioners (NAIC) suggests that you regularly consider a life insurance policy review to determine if your coverage is still appropriate for your situation. In fact, most financial advisors and insurance professionals recommend reviewing your life insurance coverage annually. Your agent can help you make necessary policy modifications according to your present needs, as well as examine the potential for changes in the coming years.

A good way to be sure this important task gets on your “to-do” list, is when your life insurance policy comes up for renewal. Not only can your life insurance renewal serve as a reminder, but because most insurers generally send out renewal notices at least 30-days in advance (some even earlier), you'll have plenty of time to speak with your agent or company representative to make any changes to your existing policy.

However, there may be times during the year when specific life changes just can't (and shouldn't) wait until your policy renews. According to the Insurance Information Institute, some types of life changes may include:1

  • A new marriage or divorce
  • A new child or grandchild who is born or adopted
  • Any significant changes in your health or that of your spouse/domestic partner
  • Assuming the financial responsibility of an aging parent
  • A new home purchase
  • A loved one who may require long-term care
  • When you refinancing your home
  • Coming into an inheritance

Your life insurance policy was never meant to be a set-it-and-forget-it document. By regularly reviewing your life insurance plan with a professional, you help ensure that your policy remains up to date and that you have adequate life coverage over the long-term for your loved ones.

1. http://www.iii.org/article/how-often-should-i-review-my-policy-0

Was this article helpful?
2
2

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Life Insurance Policy Review

Life is ever-changing. For this reason, it’s important to take the time to for a life insurance policy review when you experience certain life changes, as well as annually. Regularly reviewing your life insurance policy can help you identify gaps, and adjust to significant life changes that could change your life insurance needs. For more information, visit our learning center.

WEB.1404.04.15