Knowing when it’s time for a life insurance review.
When you secure life insurance, you cannot simply let your policy sit idle. Instead, you should regularly review and update your policy to ensure that you have the right coverage to meet your changing needs. But when exactly are you due for an insurance review? Here’s what you need to know.
Annual Insurance Reviews
Generally, you should review all your insurance policies, including your life insurance, on an annual basis. If you haven’t had any major life changes during the year, then your coverage needs will probably not change very much during your review. However, as you are bound to experience major changes every couple of years or so, it’s important to maintain your annual review schedule.
Additional Insurance Reviews
There are certain scenarios in which you should conduct and extra additional review of your life insurance. If you are anticipating a major life change or if a sudden change occurs, then you should review and update your life insurance as soon as possible. Some of these major changes include:
- the birth of a child or grandchild
- your children starting college
- caring for a sick relative
- major business success
- unexpected inheritance
- winning the lottery
What to Consider During a Review?
When reviewing your life insurance, you need to consider the amount of debt that you carry and your financial obligations. As both these things are bound to fluctuate throughout your lifetime, you need to adjust your insurance coverage limits accordingly. You should have enough coverage to pay off your current debts and meet all your financial obligations.
This is what you need to know about life insurance reviews. Do you need help managing your life insurance policy? If so, then contact the experts at Pierce Insurance Group. Our dedicated team is eager to assist you with all your life insurance needs today.