Reviewing Your Life Insurance Policy

Here at Hero Insurance and Planning, we help you plan for all your health needs.

Why Reviewing Your Life Insurance Policy Is Crucial


Life insurance is one of the most important financial tools for protecting your family’s future. However, simply purchasing a policy and forgetting about it is a common mistake. Like other financial instruments, life insurance needs regular review to ensure it aligns with your current life circumstances, financial goals, and family needs. Here’s why reviewing your life insurance policy is essential:

Life Changes, So Should Your Coverage


Major life events often call for an update to your policy. These events include:


  • Marriage or divorce
  • The birth or adoption of a child
  • Purchasing a home
  • Starting or changing a job
  • Starting a business
  • Retirement


Each of these events can impact your financial responsibilities and the level of coverage needed. A policy review ensures your beneficiaries are correctly listed and the coverage amount is adequate.


Adjusting to Financial Shifts


Over time, your income, expenses, and savings goals change. You may have paid off debts or acquired new ones. Reviewing your policy helps ensure:


  • You’re not underinsured and leaving loved ones financially vulnerable.
  • You’re not over insured and paying for more coverage than necessary.
  • Your policy still fits your broader financial plan, including retirement and estate planning.


Policy Performance and Options


If you own a permanent life insurance policy (like whole or universal life), it’s important to assess:


  • Cash value performance: Is it growing as expected?
  • Policy loans or withdrawals: Have they affected the death benefit?
  • Premium changes: Are there upcoming increases or better premium structures?


A review can also uncover new riders or features offered by your insurer that may benefit you, such as chronic illness coverage or long-term care riders.

Beneficiary Updates


Failing to update beneficiaries can lead to unwanted complications. For example, if a former spouse is still listed, your current family may be unintentionally excluded from receiving the benefit. A review helps:


  • Ensure your beneficiaries reflect your current wishes.
  • Consider adding contingent beneficiaries.
  • Avoid probate or legal disputes.


Keeping Up With Policy Changes and Laws


Insurance products and tax laws evolve. New policy options may offer better rates, greater flexibility, or more suitable features. A periodic review can reveal:


  • Opportunities to replace or supplement existing coverage.
  • Tax implications that may affect your estate or beneficiaries.
  • Better options if your health or risk profile has improved.


Peace of Mind


Reviewing your life insurance policy gives you confidence that your loved ones will be cared for if the unexpected happens. It allows you to be proactive rather than reactive and ensures that your intentions will be honored without unnecessary stress or delays.


How Often Should You Review?


Experts recommend reviewing your life insurance policy annually, or after any significant life change. Meeting with a financial advisor or insurance professional can clarify gaps you may not recognize.


Final Thoughts


A life insurance policy is not a “set-it-and-forget-it” asset. It’s a living part of your financial plan, designed to evolve with your life. Regular reviews help ensure that your protection keeps pace with your needs and that your loved ones will receive the full benefits of your foresight and planning.