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…

📅 Last Updated: July 13, 2026

When to Review and Update Your Life Insurance Policy Life insurance is a cornerstone of financial planning, providing crucial protection for your loved ones after you're gone. However, it's not a "set it and forget it" product. Your life circumstances are dynamic, and your life insurance coverage needs to evolve with them. Failing to review and update your life insurance policy regularly can leave your family underprotected or, conversely, lead you to pay for more coverage than you truly need. Many people purchase a policy and then rarely think about it again. Yet, major life events, economic shifts, and even changes in your health can significantly impact how much and what type of coverage is appropriate. This article will guide you through the critical junctures when you should proactively assess your life insurance policy. We'll explore the specific reasons for review, what aspects of your policy to examine, and how

to make necessary adjustments to ensure your financial safety net remains robust and relevant for your family's future. > Life Insurance Policy Review: A periodic assessment of your existing life insurance coverage to ensure it aligns with your current financial goals, family needs, and life circumstances. This process typically involves evaluating coverage amounts, beneficiary designations, policy types, and premium costs. Why Regular Life Insurance Policy Reviews Are Essential Life insurance is designed to protect your financial dependents. As your life changes, so do the financial obligations and needs of those dependents. Regular reviews ensure your policy remains effective and efficient. The Dynamic Nature of Life and Financial Needs Your financial landscape is rarely static. From the moment you purchase your first policy, variables like income, debt, family size, and long-term goals are constantly shifting. A policy that was perfectly adequate five or ten years ago might be woefully insufficient or

unnecessarily expensive today. According to a 2025 study by LIMRA, roughly 40% of U.S. households believe they need more life insurance, yet only about one-third of those actively plan to purchase it within the next year. This gap often stems from a lack of awareness about when and why to review existing coverage. Regular reviews help bridge this gap, ensuring your coverage accurately reflects your current responsibilities and future aspirations. Without review, you risk leaving your loved ones in a precarious financial position. Avoiding Underinsurance or Overinsurance One of the primary goals of a policy review is to strike the right balance between being underinsured and overinsured. Underinsurance occurs when your policy's death benefit is insufficient to cover your family's financial needs. This could mean they struggle to pay off the mortgage, fund college education, or maintain their standard of living. For example, if you purchased a $500,000 policy when

you had one child and a small mortgage, but now you have three children, a larger home, and significant college savings goals, that original policy might fall far short of what's needed. The average cost of raising a child to age 18 in the U.S. is estimated to be over $310,000 as of 2026, excluding college, highlighting the significant financial impact of dependents. Conversely, overinsurance means you're paying premiums for more coverage than your family realistically needs. While it might seem harmless, overinsurance ties up capital that could be better used for other financial goals, such as retirement savings, debt reduction, or investments. For instance, if your children are now financially independent and your mortgage is paid off, a large policy you took out decades ago might be excessive. A review can help you adjust coverage, potentially lowering premiums and freeing up funds. Key Life Events Triggering a Life Insurance

Review Certain milestones in life are clear signals that it's time to re-evaluate your life insurance policy. These events often bring significant changes to your financial obligations and family structure. Marriage or Divorce Your marital status profoundly impacts your life insurance needs and beneficiary designations. Marriage: When you get married, your financial responsibilities often expand. You might now share a mortgage, car loans, or other debts. Your spouse becomes a primary financial dependent, and your income contributes to their well-being. It's crucial to review your policy to: Add your spouse as a beneficiary: Ensure they receive the death benefit. Increase coverage: Account for shared debts and the financial support your spouse would need if you were no longer there. Consider a new joint policy or separate policies: Discuss the best structure for your combined financial plan. For many couples, combining finances means a single income loss would be devastating. Divorce: