When was the last time you reviewed your life insurance policy? Do you look over your annual statements when you receive them or simply file them away for later? Are you confident that you have the right amount of coverage and type of policy to cover your loved ones if you need it? How will you know if your records go straight into the filing cabinet, never to be looked at again?
Any holistic wealth preservation plan includes life insurance—and if you took care to get the policy in place, you might as well make sure it stays there and that your beneficiaries are accurate.
A good rule of thumb is to review your policy with your financial professional annually, so you can learn about new coverage options, discuss concerns about your premiums, or take action if a policy is due to expire or might otherwise lapse.
Start with these questions:
- What coverage do you have now? How long is your policy expected to remain in place?
- When was the last time someone reviewed the policy with you?
- Have you had any significant changes in your life, health, or home since the purchase of your last policy?
Life can change suddenly and dramatically at times, and so can your insurance needs. Each of the following life changes can affect your life insurance needs and the cost of your policy(s):
- Getting married or divorced
- Adding a family member (through pregnancy, adoption, or blending households)
- Receiving an inheritance or taking on debt
- Buying or selling property, or paying off your mortgage
- Becoming an empty nester
- Career changes, including retirement
- Starting or selling a business
You might also consider reviewing your policy if you have any health changes. Making healthy changes, such as quitting smoking or getting your blood pressure under control, can mean the potential for better coverage, while health challenges and risky activities might be cause to consider increasing your coverage, though likely at a higher cost. (Regardless, you will be covered by any policies you have in place at the time.)
In addition to life changes, our life insurance needs are affected by what’s going on in the world, such as fluctuating interest rates, changes in insurance providers, improved insurance benefits and features, and more.
Life doesn’t stand still—and neither should your life insurance. Reviewing your policy annually can help ensure it still protects what matters most.
This material is being provided for educational and informational purposes only. D.A. Davidson & Co. is a registered broker-dealer and registered investment adviser that does not provide tax or legal advice. Information contained herein has been obtained by sources we consider reliable but is not guaranteed and we are not soliciting any action based upon it. Any opinions expressed are based on our interpretation of the data available to us at the time of the original article. These opinions are subject to change at any time without notice. Copyright D.A. Davidson & Co., 2025. All rights reserved. Member FINRA and SIPC.