When Should I Review My Life Insurance?

Life insurance serves a fundamental purpose: ensuring the financial stability of your loved ones if you pass away unexpectedly.

The primary goal is to ensure that your dependents’ standard of living is not affected, allowing them to fulfill their dreams, maintain their home, continue their education, and sustain financial stability.

However, life is dynamic, and significant changes in your personal or financial situation may require you to adjust your policy. If you took out a life insurance policy with a fixed death benefit and, for example, your family has grown, it’s time to modify the terms to reflect your new reality.

Key Moments to Review Your Life Insurance

Family Changes
If you purchased life insurance when you were young and single, your beneficiary might have been your partner or parents. If you’re now married with children, consider adding them as beneficiaries and increasing the death benefit to ensure their financial protection.

New Debts
If you’ve recently taken out a mortgage for your dream home or secured a loan to start a business, these new financial obligations are reasons to review your policy. Ensure the death benefit can cover these debts, sparing your loved ones from financial strain.

Child-Rearing and Education Costs
Raising a child in the United States costs an average of $21,000 annually, according to expert estimates. This includes housing, food, education, and other basic expenses. If you have children or plan to have them, your life insurance should be sufficient to cover these needs in the event of your passing.

Other Significant Changes
Changes in your health, salary increases, or retirement planning are also good opportunities to reassess your coverage and adjust the death benefit to meet your current needs.

Life Insurance Should Adapt to Your Reality
Positive changes in your life, such as starting a family or achieving new financial goals, should be reflected in your life insurance death benefit. These adjustments ensure that, even in your absence, your legacy provides stability and peace of mind for your loved ones.

If you have questions about calculating the right death benefit or want to learn more about the different types of life insurance available, don’t hesitate to contact a Univista Insurance specialist.