Regular life insurance reviews ensure your coverage remains aligned with your evolving financial situation, family circumstances, and goals. While there is no rigid schedule, most financial professionals recommend a comprehensive review every three to five years and after any major life event.
Major life events that should trigger an immediate coverage review include marriage or divorce, birth or adoption of a child, purchase of a home or significant increase in mortgage, major salary increase or career change, starting or selling a business, death of a beneficiary, inheritance or significant change in net worth, and retirement or near-retirement.
During a review, evaluate several key factors: Is the death benefit still adequate for your family's needs? Have your financial obligations changed (mortgage, debts, education funding)? Are your beneficiary designations current and accurate? Is the policy type still appropriate (are you still in the term phase, or has the need shifted to permanent)? For permanent policies: Is the cash value growing as projected? Are the premium payments sustainable long-term?
For permanent policies, annual statements from the carrier provide important data for reviews, including current cash value, death benefit, premium payments, policy charges, and loan balances. Compare these figures to the original illustration to assess whether the policy is performing as expected. IUL policies should be reviewed with particular attention to how the actual index credits compare to initial projections. IUL policies feature a 0% floor and cap rates typically in the 8% to 12% range, with policy fees.
A licensed agent in our network can conduct a comprehensive policy review and recommend adjustments based on your current situation.