How often should you review your life insurance?
Life is full of unexpected twists and turns and this is why its so important to make sure you have the protection that only life insurance can offer. The best way to make sure that you have the right coverage to address your needs is by regularly reviewing and updating your policy. But how often do you need to review your policy? Here’s what you need to know about reviewing and updating your life insurance.
Annual Insurance Reviews
Generally, you should review all your insurance policies, including your life insurance, on an annual basis. If you haven’t experienced any major life changes, then your coverage needs will probably not change very much. However, smaller life changes will accumulate over time, which is why it’s important to maintain these yearly reviews.
There are certain scenarios in which you should conduct an additional review of your life insurance. For instance, if you are anticipating a major life change or if a sudden change catches you off guard, then you need to review and update your life insurance as soon as possible. Some major life changes that should warrant and insurance review include:
- the birth of a child or grandchild
- your child starting college
- caring for a sick relative
- major business success
- unexpected inheritance
- winning the lottery
What to Consider During a Review
Every time you review your life insurance, you need to consider the amount of debt you carry and your financial obligations. As both of these factors are sure to change throughout your lifetime, you need to adjust your insurance coverage limits accordingly. You should have enough coverage to pay off your current debts and meet all your financial obligations.
This is how often you should complete a life insurance review and what you need to consider during a review. Do you have further questions regarding your life insurance? Then don’t hesitate to contact the professionals at Udell Family Insurance. Our dedicated team is ready to assist you with all your insurance needs today.