How often should I review my life insurance?

When you buy life insurance, you likely have one important “why” in mind: helping financially protect those who matter most if you pass away. If it’s been a while since you purchased coverage, it may be time to review your policy to make sure it still meets your needs—after all, life doesn’t stand still and your coverage shouldn’t either.

A smart rule of thumb is to review your life insurance once a year. It’s a simple annual check-in to confirm that your coverage still matches your life today. It’s also a good opportunity to ensure key details (like beneficiaries) are up to date.

Below are nine common reasons to review your life insurance annually, plus a quick checklist to make the process easier.

9 reasons to review your life insurance annually

1. To check or change your beneficiaries Your beneficiaries are the people or entities—including individuals, trusts, businesses, or charitable organizations—you choose to receive your life insurance death benefit.

Review them at least once a year—and anytime you have a major life change, like a marriage, divorce, death of a beneficiary, or shift in your wishes. Keeping beneficiary designations current can also help make the claims process smoother for your loved ones later.

2. Your family has grown

A new baby, an adoption, or a growing household can change what your family might need if you passed away. As you welcome new members to the family, review your coverage and consider costs like final expenses, ongoing living expenses, and replacing income.

You may also want to talk with your agent about DreamSecure Children’s Whole Life Insurance. This policy has the option to purchase additional coverage at specified dates and life events, subject to benefit amount limitations.

3. Your marital status changed

If you’re recently engaged or newly married, you may want to be sure your partner is named as a beneficiary, if that’s your wish.

This also applies to divorced or separated couples. A quick beneficiary review can help ensure your policy reflects any changes in marital status. If you overlook doing this, previously named beneficiaries could still be legally entitled to funds you now want others to receive.

4. You started a new job or got a raise

A role or promotion can change your income and your financial responsibilities. An annual review is a good time to check in with your agent to confirm your coverage still meets your needs and accounts for any extra income—especially if others depend on your paycheck.

5. You’re starting a new business

Launching a business often comes with new loans, personal investments, or both. If you’ve shifted savings toward your business or taken on debt, you may want to check whether your current life insurance would still support your loved ones if you pass away.

6. You’ve added debt

A mortgage, home equity loan, or other borrowing can change your household’s financial picture. Reviewing your life insurance alongside an updated monthly budget can help you understand what your beneficiaries might be responsible for.

7. Your parents’ situation has changed

If you’re helping support a parent, whether they’ve moved into your home or into assisted living, that added monthly financial load can affect how much protection makes sense for your family. This might also be a good time for your parents to consider purchasing final expense coverage.

8. Your kids are out on their own

As your children become more financially independent, you may decide your current coverage amount or beneficiary choices should change. However, if they’re in college or just starting out, they often still need your support, and you can help secure their financial future by verifying your policy details.

9. You bought a home

Closing on the purchase of a new home is one of the biggest reasons people revisit life insurance. An annual review is a good time to consider whether your coverage amount and time horizon could help your family stay in the home if you pass away.

Bundle and save on your insurance

Here’s one more great reason to review your life insurance: You may be eligible for a discount. If you have auto or homeowners insurance with American Family Insurance, and you buy a life insurance policy from American Family Life Insurance Company, you may be able to get a discount on your auto and home premiums.* Check in with your agent to confirm eligibility and whether your current discounts are applied.

How to review your life insurance policy

Here’s a simple annual checklist to help you review your life insurance policy and stay organized:

• Type of policy: There are so many different types of insurance, it’s easy to get confused. Confirm which policy you are reviewing and what it covers. Then make the type of policy you’re updating the name of the file.
• Insurance company and agent contact info: Make sure you can easily find the insurer’s name, policy number, and your agent’s contact details.
• Beneficiaries: Verify who is listed and whether you want to make updates.
• Coverage amount: Check to see if the benefit amount still matches your needs and goals today.

Review your life insurance coverage today

Life changes, so your coverage may need to change, too. Checking in on your life insurance each year is a simple way you can confirm your beneficiaries, your coverage amount, and whether it makes sense to add more protection to fit the changes in your life. If you decide you’d like additional coverage, you’d usually do that by applying for and purchasing a new policy.

As always, be sure you select coverage from a company with flexibility to meet your needs. Your American Family Insurance agent will help you review life insurance options and choose coverage that gives you peace of mind in knowing you’re helping protect your loved ones’ financial future.

This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.

*Discount, savings, and product eligibility varies based on the way you purchase insurance, by state, property type, and policy form. Discounts may not apply to all coverages on an auto or home policy. Discounts do not apply to life policies. Exclusions may apply.

Policy forms: ICC17-223 WL, ICC17-224 WL

Life insurance underwritten by American Family Life Insurance Company, 6000 American Parkway, Madison, WI 53783.