The start of a new year is a natural time to review the things that matter most—your goals, your finances, and your family’s needs. While term life insurance doesn’t require much day-to-day attention, taking 15 minutes each year to check in on your policy can help ensure everything is still aligned with your life.
Here’s a simple checklist to walk through as you settle into the year ahead.
- Is your coverage amount still right?
Think about the financial responsibilities your policy is meant to cover: your mortgage, childcare, income replacement or education costs.
- Has your income increased?
- Have your expenses increased?
- Have you taken on new debt?
- Have your dependents’ needs changed?
If your current policy wouldn’t fully support your family’s financial picture today, it may be worth considering an adjustment or adding supplemental coverage.
- How much time is left on your term?
Most people choose a term length that matches a key financial milestone—like the length of a mortgage or until their youngest child reaches adulthood.
If you’re several years into your policy, take a moment to check:
- How many years are left?
- Will your coverage still be in place during your highest-need years?
Knowing where you are in your policy term can help you plan ahead, especially if you’ll want coverage beyond your current policy’s end date.
- Have there been any major life changes?
Life happens—and sometimes, quickly. If any of the following have taken place since you last reviewed your policy, it’s worth making sure your coverage still fits:
- Got married or divorced
- Bought a home
- Started a business
- Had a child or adopted
- Became a stepparent or guardian
- Took on new financial dependents (aging parents, for example)
These types of changes can affect both your coverage needs and your beneficiary designations.
- Are your beneficiaries still up to date?
This is an easy one to overlook, but important.
Take a moment to review:
- Are your listed beneficiaries still correct?
- Do you want to add a contingent beneficiary?
- Have family dynamics or legal arrangements changed?
Keeping this information current helps ensure that your policy works exactly the way you intend it to if something were to happen.
A Little Maintenance Goes a Long Way
Term life insurance is designed to be low-maintenance, but a quick review at the start of each year can go a long way in keeping your policy in sync with your life.
If you’d like help reviewing your current policy, or exploring options to adjust or supplement your coverage, we’re here to help.
