In Starting and Maintaining your Policy

4 Reasons to Re-Evaluate Your Life Insurance Every Year


With the new year in full swing, now is the time to help make sure that your year is set up for success! Today, we’re discussing the importance of re-evaluating your existing life insurance policy and how you can help optimize it for your current needs. Let’s dive in!

How to Conduct an Annual Life Insurance Audit

Life is too volatile to assume that the life insurance policy you previously invested in fits your current list of needs. When trying to determine if your policy could use an adjustment, you should ask yourself the following questions:

1. Has your job status changed?

Changes to your job can include anything from a promotion, a demotion, a raise in compensation or a pay cut. Generally speaking, the amount of life insurance you need can be calculated by multiplying your annual income by 10. Thus, if your income has shifted, your policy should be adjusted to match this amount.

Also, keep in mind that the expiration of your life insurance plan should align with your retirement date. If your retirement date has shifted at all, you will want to adjust the duration of your policy term accordingly.

2. Has your health improved?

It may be no surprise that your life insurance policy rates are directly tethered to your personal health.
If you have recently lost weight, stopped smoking, reduced your cholesterol or otherwise improved your physical health, you are advised to visit your doctor for a life insurance medical exam. The results could help reduce the money you pay for life insurance.

3. Has there been a change to your mortgage?

If your mortgage has been factored into your life insurance policy (and it should be), any changes to said mortgage should coincide with your policy’s coverage. For example, if you recently paid off your home, your plan no longer needs to cover this resolved financial obligation. On the opposite side of the coin, a new home, condo or permanent vacation getaway should be factored into your re-evaluated policy.

4. When was the last time you shopped for a better rate?

Just as you shop for car insurance, you should explore various life insurance policies, as insurers will oftentimes offer similar or equal coverage for less than their competitors. Make a plan to annually shop life insurance policies to make sure you are still getting the best deal for your dollars.

Ethical, Affordable Life Insurance

As a customer of Low Cost Life Insurance, we actively help you re-evaluate your life insurance policy. Each year, we check items such as your coverage amounts, beneficiary designations, trust incorporations and more. We do this to double-check that your life insurance policy is up to date and designed with your best interests in mind.

If you are not currently a customer, we invite you to experience the benefits of ethical, affordable life insurance with a free term life insurance quote. We look forward to helping you!

Get a Free Term Life Quote