Plan for Tomorrow | Reviewing life insurance with a financial professional
A middle-aged couple meets with their financial advisor

Reviewing your life insurance policy with a financial professional

May 30, 2023, 3:20:59 PM | Reading Time: 5 minutes

As your life situations change, so can your life insurance needs. That's why it can be vital to keep your life insurance policy up to date by reviewing it regularly with a financial professional. Here are some important factors to consider when looking over your policy.

How often should you review your life insurance policy?

You should plan to meet with a financial professional at least once a year. Doing this can help you make sure your policy is still right for your needs and that the information you have on file is still accurate. You should also review your policy whenever something major occurs in your life. Some changes that should prompt a review include:

A change in family status

You may have purchased a life insurance policy when you were single, or maybe when you had your first child. But your family may have grown since then, so you may wish to increase your coverage or make some adjustments to ensure all your loved ones are protected.

A concern about becoming disabled

If you suffer an unexpected disability, it can be a burden for you and your family. Paying for your life insurance can be tough too. When you meet with your financial professional you can discuss policy riders that can help keep your coverage going if you’re unable to work due to an illness or injury.

A change in your marital status

Recently tied the knot? It’s important to discuss with your spouse how you’ll depend on each other for income, so you can choose the best policy as a couple. If you’re getting a divorce, your coverage will likely need to be adjusted, as well as your beneficiaries.

A change in your financial responsibilities

A variety of financial challenges can impact the amount of life insurance you may need. From caring for elderly parents, a special needs child, educational expenses, or an increase in health care needs, you may want more coverage to help your loved ones cover any increased living expenses when you pass away.

A change in beneficiaries

It’s possible that the people you have listed as your life insurance beneficiaries have changed. In this situation, it’s important to make sure your policy is up-to-date and accurate. If you don’t name a beneficiary, or the beneficiary is underage or no longer alive, a court will likely decide what happens to your estate. When you review your life insurance policy, consider all changes in your relationships such as marriages, remarriages, divorces, deaths, births, adoptions, and friendships.

A change in the amount of money owed

Have you made a big purchase resulting that created a new debt? You’ll likely want to discuss this with an agent. Consider how your family would pay for your debts if you pass away. If you’ve downsized, you may not need as much life insurance coverage. When you sit down with your life insurance agent, be prepared for questions like:

  • Has there been a divorce?
  • Has there been a birth or adoption?
  • Have you purchased a home?
  • How much coverage do you have currently?
  • Have you started a business?
  • Are you currently planning for upcoming life events?
  • What type of insurance do you have?
  • Why did you pick that type of coverage?
  • Do you feel like this is enough coverage?
  • How long has it been since you have evaluated your life insurance needs?
  • Have your goals for your policy changed?
  • Have you experienced any life-changing events?
  • Are you on track for retirement?
  • Are you saving for college expenses?
  • Do you have a mortgage or other outstanding debt?
  • Would you or your family be financially stable if you or your spouse/partner were to unexpectedly die?

Why you should review your life insurance policy with a financial professional

The only constant you can count on is that life changes. So, your life insurance policy may be something that needs to be reassessed and updated on an ongoing basis. Regularly reviewing your life insurance plan with a financial professional can help ensure that your policy stays up-to-date and your coverage is adequate to protect your loved ones. A review of your life insurance policy may help you:

  • Save money by reducing premium payments – Today’s life insurance products are more efficient than ever and new product developments may create money-saving opportunities.
  • Pay the same premium for an increased death benefit – Longer life expectancies and more effective products may lead to more protection for the same premium.
  • Save the policy from lapsing – Your policy may be at risk of lapsing and you may not even know it. A life insurance review can stop a policy from lapsing and help you maintain the appropriate amount of protection for your situation.
  • Confirm company stability – In today’s economy, the financial strength and stability of your life insurance provider are more important than ever. Recent adjustments in carrier financial stability provide an opportunity for examination.
  • Adjust coverage to keep pace with your ever-changing needs – Life-changing events include the birth of children or grandchildren, marriage, death, divorce, change in job status, etc. All of these changes may affect your life insurance needs and future goals.

If you think it’s time to review your life insurance policy, North American Company for Life and Health Insurance agents can help you. To learn more, submit your information through North American’s find an agent page.


REV 11/2022