Life Insurance Policy – So, life insurance. It’s one of those things that we know we need, but sometimes, it just gets shoved in a drawer and forgotten about—until the time comes to review it, and we realize it’s not quite doing what we thought it was. I’ll be honest, I didn’t give my policy a second thought until one day it hit me—how do I even know my coverage still makes sense for where I am in life? I started to panic a little. What if I was overpaying or—worse—underinsured?
Luckily, after a little research (and a few stressful phone calls), I figured out a handful of simple things that can make sure your life insurance policy stays up-to-date with your life. Trust me, it’s not as complicated as it sounds, and you definitely don’t want to ignore it. So, if you’re in the same boat, let me walk you through the six things I now do regularly to make sure my policy still fits my needs.
6 Ways to Make Sure Your Life Insurance Policy Is Up-to-Date
1. Review Your Coverage Amount Regularly
I’ll be straight with you—this is something I completely missed when I first got my policy. You get a policy, you sign the papers, and you think you’re good to go. But over time, things change, right? When I had my first child, I started thinking about how much my family would need if something happened to me. I realized my original policy amount didn’t even come close to covering my family’s needs for the long haul.
Tip: Every couple of years (or after major life events), take a step back and look at your coverage amount. If you’re supporting kids, buying a home, or taking on any other big financial responsibilities, you might need more coverage. I did a simple “what if” calculation—what would it take to pay off my mortgage, cover college tuition, and ensure my spouse was okay without me—and adjusted accordingly. A general rule of thumb is to aim for coverage that’s 10-15 times your annual income, but tailor it to your specific situation.
2. Update Your Beneficiaries After Major Life Changes
This one sounds like a no-brainer, but life has a funny way of keeping us distracted. I had a coworker who forgot to update his beneficiary after getting divorced. Yikes, right? The policy still listed his ex-wife, and that could have been a huge mess if something had happened to him.
Tip: Major life events—marriage, divorce, the birth of a child—should trigger a review of your beneficiaries. It’s a simple thing that could prevent big headaches down the road. You can typically make changes to your beneficiary online, and it only takes a few minutes. Double-check that your policy is reflecting your current wishes.
3. Check for Riders That Don’t Make Sense Anymore
When I first got my policy, I added all these riders (extra coverage options) because they sounded great at the time. A critical illness rider, accidental death, waiver of premium—yup, I had them all. But over the years, I realized some of these weren’t even necessary anymore.
Tip: Review your riders periodically. Some might duplicate coverage you already have, or they could be irrelevant now that your life circumstances have changed. For example, I got a critical illness rider when I was younger, but as my health improved, I realized it wasn’t as needed. Cutting out unnecessary riders can help you save on premiums without sacrificing coverage.
4. Reevaluate Your Premiums
Here’s the thing: life insurance premiums are not always set in stone. When I first signed up, I went with the plan that seemed to make the most sense at the time. However, a couple of years later, I started to wonder if I could get a better deal—especially since I’d been with the same company for a while. So, I called up my agent and started asking the right questions.
Tip: Shop around or check in with your provider. Sometimes, you can lock in better rates as you get older or if your health improves. I did this and ended up lowering my premiums without reducing my coverage. Also, if you’re in good health and your policy was purchased when you were younger, you might qualify for a better rate now. Don’t be afraid to negotiate, or even switch providers if necessary.
5. Assess the Type of Policy You Have
I started out with a term life policy, and for a while, that worked great for me. But as time went on, I started to think about whether it was still the best fit. Term life policies expire after a certain number of years, while whole life policies offer coverage for life and build cash value.
Tip: Review the type of life insurance policy you have. A lot can change over the years, and what was right for you at 30 might not be the best option at 40. If your term is about to expire, you might want to look into converting to a permanent policy if it fits your needs. Or, maybe a whole life policy makes more sense if you’re thinking long-term wealth building and estate planning.
6. Don’t Forget About Your Health
Let’s be real for a second: health plays a major role in life insurance. A few years ago, I started feeling sluggish and realized I wasn’t taking the best care of my body. As I hit my late 30s, I started thinking about how my health could impact my premiums (or worse, my ability to qualify for coverage in the future).
Tip: Your health can affect your premiums and your ability to renew or apply for life insurance. Keep an eye on your health and take steps to improve it, even if that means small changes. Regular exercise, a balanced diet, and keeping up with your medical check-ups can lower your premiums and keep you covered for the long haul. If you’ve experienced any significant changes to your health, it’s worth having a conversation with your insurance agent to see if those changes impact your policy.
So, there you have it—six ways to make sure your life insurance policy stays up-to-date. It’s all about being proactive. Life moves fast, and it’s easy to let something like insurance slip through the cracks, but a few regular checks can make sure your family is protected, and you’re not overpaying. Don’t wait for a reminder to roll around; take control and make sure your policy still matches your life today. If you’ve learned anything from this, it’s that your life insurance policy shouldn’t be a “set it and forget it” deal. It’s a living, breathing part of your financial safety net. Keep it current and keep your family secure.
