As with other aspects of your financial well-being, you shouldn’t take your life insurance policy for granted and forget about it. As a general rule, it’s a good idea to review life insurance with your life insurance agent at least once a year. A policy review is a way to make sure you have the right type and level of coverage to protect your loved ones. And if you have permanent life insurance, it’s a good opportunity to make sure you’re meeting your overall financial goals.
The life insurance review is also a great time to learn about new coverage options from your insurer, to discuss potential concerns you may have about the rate you’re paying, and to take action before the policy expires.
When to review the life insurance policy
Faced with certain changes in your life, you may want to modify your policy. Therefore, it is convenient to schedule an insurance review after an important event in your life. Here are some of the changes that could require a life insurance review:
- get married
- get divorced
- Buy a house
- Have or adopt a baby
- accept a new job
- Receiving a substantial raise or promotion
- Take out a mortgage or loan
- refinance your house
- cancel a mortgage
- Buy a business
- Sell a business
- receive an inheritance
- Having to care for a loved one long-term
- suffer a disability
- Start living without children
- lose a family member
One reason that is often overlooked when scheduling a life insurance review is suffering from a health problem. Usually, this circumstance is a good reason to increase coverage or explore more coverage options. Just remember that a new policy will cost you a little more if you have an illness. However, you will have the peace of mind that you continue to have the coverage you already have, regardless of your health.
On the other hand, an improvement in your health, such as losing weight, exercising more, quitting smoking, or controlling a problem like high blood pressure, can help you achieve a better rate. The same is true if you recently gave up a dangerous hobby, like mountaineering, or a risky job, like being a roofer.
Talk to a licensed insurance agent
One of the best ways to ensure that your loved ones are well protected is to speak with a reputable insurance agent who will walk you through the entire process. If you don’t have an agent or advisor to talk to, you can use our agent finder. You can also speak directly with an insurance company. These are the business partners who support our non-profit mission and can help you purchase coverage directly or through one of their agents or advisors. The key is to take the plunge today.