Life in Transition: When to Review Your Life Insurance Policy
November 15, 2023
As you navigate the different phases of your life, your priorities shift, responsibilities evolve, and dreams transform. Given the dynamic nature of life, your life insurance policy should be equally flexible. Reviewing your coverage regularly ensures it aligns with your current circumstances and future goals.
Life Milestones Triggering a Review
Several life milestones can affect your life coverage needs and plans.
Marriage and Family Planning
When you tie the knot or welcome a new member into your family, it's time to reassess your life policy. Consider the financial security your family may require in the event of your absence.
Homeownership
A mortgage is a long-term commitment. Your life coverage should reflect this change to ensure your loved ones can keep the roof over their heads in the event of your death.
Career Advancements
A promotion or a change in employment status might mean adjusting your financial goals. Career transitions can also trigger changes in your life policy needs.
Education Planning
A life insurance review can help ensure your coverage is sufficient to support your children’s educational aspirations, even if you are not there to see them through.
Retirement
Retirement is a significant life transition that impacts your financial landscape. Reevaluate your life policy to ensure it complements your retirement plans and provides for your spouse or beneficiaries.
Changing Financial Situations
Life is unpredictable, and so are your financial circumstances. Regularly reviewing your life policy allows you to align coverage with your budget and adjust it according to your financial priorities. After all, your coverage should not only protect your loved ones but also support your financial goals.
For example, as you work toward reducing your debts, your financial obligations change. Depending on the type of policy, you can adjust your coverage as needed to adapt to those reduced liabilities. You can also adjust your coverage to incorporate your policy into your investment and savings strategy.
Health, Life, and Family
Changes in health can significantly impact your life insurance needs. Whether it's a diagnosis, recovery, or adopting a healthier lifestyle, these events warrant a closer look at your life coverage. You may also want to consider long-term care needs.
One thing that many people overlook is the changing dynamic and life policy changes that arise with a divorce or other unexpected family changes. Make sure you keep your coverage current based on your family structure. In addition, if your family or financial decisions bring you a sudden windfall, it can alter your financial perspectives and future plans. Assess your coverage to be sure it meets your needs and wishes.
Life Insurance Review
Regular reviews of your coverage are more than just recommendations; they are a vital part of your financial planning. If you remember to call your agent after any major life change, great! Otherwise, plan on reviewing at least every other year and let your 1891 Financial Life agent assess your coverage. The agent will inform you of new products and/or benefits available to see if what you have is still the best plan for you.
About 1891 Financial Life
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.