Policy Review: Is the life insurance you purchased in the past aligned with your life today?

If you are like most people, when you purchase a life insurance policy you probably leave it alone and go on living your life.  After all, you have a policy, you are paying your premiums, and you know that your family is protected should something happen to you.  While this might seem like an appropriate relationship to have with your life insurance, you could be missing out on valuable opportunities to improve and enhance your current coverage.  Let’s discuss the importance of reviewing your policy with your life insurance agent to make sure that the policy you bought years ago still matches the life you are living today.

Why you and your agent should review your life insurance policy

 It is always a good thing to stay familiar with any insurance policy you purchase.  With life insurance, however, it is particularly prudent to reassess your coverage consistently to address any changes that may have happened in your life recently.  

For example, perhaps you were renting an apartment when you first purchased your policy and now you have bought a home and are paying a mortgage.  Should something happen to you, would your loved ones be able to keep up with the mortgage payments, or would their income be insufficient to stay in the home?  Maybe you have since had children who rely on your income to help them thrive in school and in life.  

picture of winding road representing changes in your life that require life insurance changes

Your life changes all the time.  Shouldn’t your policy change with you?

Below is a list of just some of the significant life changes that can affect your coverage needs.  Take a look and see which of these events may have happened in your life and ask yourself if your life insurance policy if reflective of the life you are currently living.

  • Changes in income
    • New Job or Business
    • Loss of Job or Income
    • Recently Retired
  • Change in Family
    • Birth or Adoption of a new Chid
    • Aging Parents that you Care for
  • Change in Living Situation
    • Purchase of a new home
    • Recently paid off the mortgage on current home
  • Change in Relationship
    • Recently Married
    • Recently Divorced
  • Change in Health 
    • Quit Smoking, Lowered Blood Pressure or Cholesterol
  • Older Policy based on Outdated Inflation
    • If a policy is 10, 20 years old, or more, recent inflationary data may alter life insurance coverage effectiveness

This list represents some of the most common events that necessitate greater coverage or even additional policies.  Your life insurance agent should know when these events occur in your life so that they can provide timely advice and guidance concerning your life insurance policy.  

the insurance industry is always innovating. a sign that says innovation

As the life insurance industry grows, new opportunities for coverage arise

You rely on your life insurance agent to help you navigate the best possible coverage for your life.  The life insurance industry regularly experiences changes to regulations and the creation of innovative products that may not have existed at the time you purchased your policy.  A policy review gives your agent the chance to share opportunities that could help save you money or provide more flexible coverage options that better serve where your life is at today.  

Changes made to the tax code at the federal level, estate planning opportunities, and even the recent pandemic have all had an impact on the value of various life insurance products.  In response, the industry continues to craft products that reflect these changes and are advantageous to the consumer.  Your agent can keep you informed of these changes and how they might affect your policy. 

pic of umbrellas representing the importance of life insurance

Protection requires vigilance. 

Staying current with your policy requires vigilance.  While we all have lives to live it can be easy to let things like your policy slip through the cracks on our to-do list.  This is why your agent will reach out to you to check in on your life and make certain that your coverage matches your goals.  

If it has been a while since you last thought about your policy and you know that your life has changed since then, reach out to your agent to find out how they can best serve your needs today.  They do all the heavy lifting and you would be amazed at how a simple conversation can put you in a better position to weather whatever may come tomorrow.  My Life Insurance Specialists is here to help you and be a resource for your insurance needs.  Contact us today to schedule a policy review and align your coverage with your needs.