How often should I review my life insurance policy?

You should review your life insurance policy at least every three to five years, or immediately after any significant life event such as marriage, divorce, birth of a child, purchasing a home, or a major change in income or health.

What happens if I don't update my beneficiaries after a divorce?

If you don't update your beneficiaries after a divorce, your ex-spouse could still receive the death benefit upon your passing, even if that's not your current intention. State laws vary, but it's always safest to proactively update your beneficiary designations.

Can I increase my life insurance coverage without a new medical exam?

It depends on your existing policy. Some policies have a guaranteed insurability rider that allows you to purchase additional coverage at specific intervals without a new medical exam. Otherwise, increasing coverage typically requires a new application and medical underwriting.

What should I do if my health has improved significantly?

If your health has improved (e.g., quitting smoking, significant weight loss), contact your current insurer to see if you can be re-rated to a better health class, which could lower your premiums. Alternatively, you could apply for a new policy with a different insurer to potentially secure better rates.

Is my employer-provided life insurance enough?

Employer-provided life insurance is often a good starting point, but it's rarely sufficient as your sole coverage. It typically offers a multiple of your salary (e.g., 1-2 times), which is often inadequate for long-term family needs. It's also tied to your employment, meaning you lose it if you change jobs.

What is a "cash value" in life insurance, and why should I review it?

Cash value is a savings component within permanent life insurance policies (like whole life or universal life). You should review its growth to ensure it's performing as expected, especially for universal life policies where non-guaranteed interest rates and fees can impact its accumulation.

Should I cancel my old policy if I buy a new one?

Never cancel an existing policy until your new policy is fully in force and you have received confirmation. There can be delays in underwriting, and you don't want to be without coverage during that period.

When to Review Your Life Insurance Policy | One Percent…