How Often Should You Review Your Life Insurance Policy?
When to Review Your Life Insurance Policy
We all lead such busy lives that it’s not always easy to fit in yet another task. However, when it comes to your life insurance, it’s important to schedule the time to review your coverage and take to your agent about the need for any additional coverages. If the last time you reviewed your coverage was when you first took the policy out, it’s time to look over your policy!
A general rule of thumb is to review policies every 12 months. Of course, if you haven’t had any big life changes within that period of time, you might find that your coverage is adequate and doesn’t need to be altered. When life events occur, it’s important to look back on your policy and update coverage as necessary. You don’t want to progress financially and not receive adequate coverage in turn.
Some life events that will require a reassessment of your life insurance financial needs include:
- Birth of a grandchild
- Getting married
- Sending your children to college
- Caring for an ill relative
There are also some exciting life changes that can change your life insurance needs, such as:
- Your business hits it big
- You’ve come into an unexpected inheritance
- You won the lottery
While you’re looking over your policy, there are a few things to consider.
As we go through life, our debt increases and decreases – we take on mortgages or sometimes borrow capital for a business venture, then we pay them off. All debts still to be paid need to be covered by your life insurance and coverage can be removed from all debts you’ve settled.
What are the important financial responsibilities that you currently supply income for? Will all of them be covered if something happens to you? Whether it’s college tuitions, family healthcare, business expenditure, or anything else, all should be covered by your life insurance just in case of tragedy.
Falsken & Associates Insurance Agency provides reliable life insurance in Thousand Oaks and neighboring cities in California. Contact us to get started on your important policy.