Learn and Plan | Tips for reviewing your life insurance policy with a financial professional
A couple reviews their life insurance with a financial professional

Tips for reviewing your life insurance policy with a financial professional

Apr 19, 2023, 3:57:19 PM | Reading Time: 4 minutes

When you purchased your life insurance policy it was best suited for your needs at the time. But as your life situations change, so do your life insurance needs. That's why it's important to keep your policy up to date. A regular life insurance review can help ensure your objectives are still being met. If they aren’t, then you can make the appropriate changes by going over your current policy with your financial professional. 

When should you review your life insurance coverage?

Experts recommend that you regularly review your life insurance policy to determine if your policy is still performing according to expectations and meeting your financial goals. At the very least, review it annually with a financial professional, who can help you make necessary modifications according to your current needs, and help you assess the potential for changes in the years ahead. 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

When you get married, it’s important to discuss 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

Naming a beneficiary is vital to help ensure your policy will pay the right person when you pass away. If you don’t name a beneficiary, or the beneficiary is under age 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

If you’ve made a big purchase recently, like a house or car, it’s important to discuss new debts such as a mortgage or vehicle financing with your agent to assess your policy coverage. 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:

  • How much coverage do you have currently?
  • 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?
  • Has there been a divorce?
  • Has there been a birth or adoption?
  • Have you purchased a home?
  • Have you started a business?
  • Are you currently planning for upcoming life 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?

Benefits of a life insurance review

The only constant you can count on is that life changes. So, your life insurance policy is something that needs to be reassessed and updated on an ongoing basis. Regularly reviewing your life insurance plan with a financial professional will 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 you may want to review your life insurance coverage, Midland National Life Insurance agents can help you. To learn more, submit your information through Midland National’s find an agent page.


REV 6/2021