Life Insurance Isn’t “Set It and Forget It”: 5 Life Changes That May Mean It’s Time to Review Your Policy
“Life is what happens when you’re busy making other plans.” – John Lennon 1
Life Changes. Your Life Insurance
This spring, my husband and I welcomed our first baby into the world.
Like many new parents, we spent countless hours getting ready for our son’s arrival. We set up the nursery, packed our hospital bags, and imagined what life would look like once he was here.
But there was something else we knew we needed to do.
During my maternity leave, I also:
- Updated my estate planning documents.
- Reviewed and updated the beneficiaries on our life insurance.
- Started a life insurance application for our newborn.
Buying life insurance gave us confidence that our son would have financial protection if something unexpected happened. But I also realized something many people overlook.
Life insurance isn’t something you buy once and forget about.
As your life changes, your policy should change too. Marriage, children, a new home, retirement, or even changing jobs can all affect whether your current coverage still fits your needs.
A simple review with your financial professional can help make sure your policy continues to protect the people you love most.
Why Review Your Life Insurance?
Life doesn’t stand still—and neither should your life insurance.
Many people buy a policy and file it away, assuming they’re finished. But over time, families grow, finances change, and goals evolve. Reviewing your policy regularly helps make sure it still reflects your wishes.
A yearly review can help answer important questions:
- Are my beneficiaries still the right people?
- Do I have enough coverage today?
- Has my income or debt changed?
- Does my policy still support my family’s goals?
- Have I experienced any major life changes?
Even if nothing has changed, reviewing your policy can give you peace of mind knowing your protection is still on track.
Five Life Events That Should Trigger a Life Insurance Review
Life rarely stands still, and each new chapter is an opportunity to make sure your life insurance continues to protect what matters most.
- You Got Married
Marriage often means sharing your future together, including your financial responsibilities. Now is a great time to ask:- Should my spouse be my beneficiary?
- Do we both have enough life insurance?
- Does our coverage reflect our future goals?
- You Welcomed a Child
Having a baby changes everything—including your financial priorities. Life insurance can help protect your child’s future if you’re no longer there to provide for them. Ask yourself:- Is my current coverage enough?
- Have I named a guardian in my will?
- Should I consider a trust for my children?
- Are my beneficiary designations up to date?
- You Got Divorced
After a divorce, updating your life insurance is just as important as updating other legal documents. Review your policy to make sure:- Your beneficiaries reflect your current wishes.
- Any required coverage under your divorce agreement is in place.
- Your policy still protects the people who depend on you.
Remember, insurance companies usually won’t automatically change your beneficiary after a divorce. You’ll typically need to submit the required forms yourself.
- You Lost a Loved One
Losing a loved one often changes more than your emotions. It can also change your financial picture. This may be a good time to:- Update beneficiaries.
- Review your estate documents.
- Reassess your family’s financial needs.
- Your Financial Situation Changed
Big financial milestones often mean it’s time to review your life insurance. Examples include buying a home, starting or selling a business, paying off major debt, changing jobs, experiencing an increase or decrease in income, receiving an inheritance, and planning for retirement. These changes may affect how much protection your family needs.
Keep Your Life Insurance Working for the People You Love
Life insurance is more than a policy – it’s one way to help protect the people who matter most.
As your life changes, taking a few minutes to review your coverage can help ensure it still reflects your family, your goals, and the future you’re building.
At National Life Group, we understand that life is full of changes. We’re committed to helping individuals and families protect what matters most through every stage of life’s journey. Talk with your financial professional about scheduling a life insurance review to make sure your policy continues to reflect the life you’re building today.
Key Takeaways
- Life changes and your life insurance may also need to change. Review your policy regularly to help ensure it still reflects your goals and the people you want to protect.
- Major milestones are a good time for a review. Marriage, having a child, divorce, buying a home, changing jobs, or retirement can all affect your life insurance needs.
- Keep your beneficiaries up to date. Your life insurance is generally paid according to the beneficiary listed on your policy, not your will.
- A review isn’t just about buying more insurance. It can also help you update beneficiaries, review policy ownership, and confirm your coverage still meets your needs.
Frequently Asked Questions
How often should I review my life insurance?
It’s a good idea to review your policy at least once a year and anytime you experience a major life event, such as getting married, having a child, getting divorced, buying a home, changing jobs, or retiring.
Can I change my beneficiary?
Yes. You can usually update your beneficiary at any time by completing a form with your insurance company. Your financial professional can help, and changing your beneficiary generally won’t affect your premium.
Can I name a trust or a minor child as my beneficiary?
Yes, but they have different considerations. A trust may provide more control over how benefits are managed. While you can name a minor child, they typically cannot receive the proceeds directly, which may require court involvement. Talk with your attorney and financial professional about the option that best fits your goals.
What should I bring to a policy review?
Bring your policy information and be prepared to discuss any recent changes in your family, finances, employment, or future goals.
Yining Eads
Yining Eads is an attorney* of National Life Group Advanced Sales Team. She received her J.D. degree and Tax LL.M. degree from the University of Washington School of Law. She is admitted to the State of Washington Bar Association, and she speaks both English and Mandarin Chinese. Before she joined National Life Group, she was in private practice with focuses on estate planning and tax dispute resolution practices. In her practice, Yining has helped high-net-worth individuals and families design sophisticated wealth passing plans. She is also an expert in cross-border planning and has assisted individuals and families that have ties with the United States to minimize U.S. gift and estate taxes.
* Not practicing law on behalf of National Life Group, National Life Insurance Company, or Life Insurance Company of the Southwest.