Life insurance is easy to purchase and then forget about. However, your financial life may look very different today than it did when you first bought your policy.
A regular life insurance checklist can help you review whether your coverage amount, beneficiaries, policy type, and other important details still match your current needs. In fact, the source material recommends using a review to identify gaps before they become a problem.
Quick Answer: What Should You Review on a Life Insurance Policy?
A complete life insurance review should include five key areas:
- Your current coverage amount
- Your beneficiary designations
- Your policy type and whether it still fits
- Policy details and administrative information
- Major life changes since your last review
If you are unsure about any of these areas, or if it has been a while since your last review, that may be a good reason to take a closer look at your policy.
Start With Your Coverage Amount
The first question is simple: Do you know how much life insurance you currently have?
Many people know they have a policy but cannot immediately identify the death benefit.
Start by confirming the exact amount of coverage. Then ask whether that amount reflects your current financial responsibilities rather than the circumstances you had when you first purchased the policy.
The source material notes that a commonly used industry guideline is approximately 10 to 12 times annual income. However, any rule of thumb should only serve as a starting point.
Life Insurance Coverage Checklist
When reviewing your death benefit, consider whether your policy could help address:
- Mortgage debt
- Other major debts
- Income replacement
- Childcare costs
- Future education expenses
- Everyday household expenses
- Final expenses
- Long-term financial support for dependents
Additionally, consider the financial value provided by a stay-at-home spouse or parent.
Someone may not earn a salary but may still provide childcare, transportation, household management, and other services that would cost money to replace.
Don’t Rely Only on Workplace Life Insurance Without Reviewing It
Employer-provided life insurance can be a valuable benefit. However, it is important to know exactly what it provides.
Ask yourself:
- How much coverage do I receive through work?
- Is the amount based on my salary?
- Do I have supplemental workplace coverage?
- What happens if I change jobs?
- Does coverage continue after retirement?
- Is the policy portable or convertible?
Workplace coverage may be one piece of your protection strategy, but you should understand how it fits with your overall needs.
Review Your Beneficiary Designations
Beneficiaries are one of the most important parts of a life insurance policy.
Your beneficiary designation tells the insurance company who should receive the policy proceeds after your death.
The source checklist emphasizes reviewing both primary and contingent beneficiaries and updating them after major life changes.
Do not assume the information is still correct simply because the policy is old.
Beneficiary Checklist
Confirm that:
- You know who is listed as your primary beneficiary
- The designation still reflects your wishes
- You have named a contingent beneficiary
- Former spouses or unintended beneficiaries are not still listed
- You have reviewed your beneficiaries after marriage or divorce
- You have updated the policy after the birth or adoption of a child
- You have reviewed the designation after a beneficiary’s death
Beneficiary mistakes can create complications at exactly the wrong time.
Therefore, periodically checking the actual policy records can be an important part of your broader estate and legacy planning.
Be Careful When Naming Minor Children
Minor children require additional planning.
Simply naming a young child as a beneficiary may create complications because minors generally cannot directly control significant financial assets.
Therefore, parents should consider how life insurance proceeds would be managed if both parents were no longer available.
Depending on your situation, an estate planning attorney may recommend a trust or another structure designed to manage assets for a child.
This is one area where your life insurance and estate plan should work together.
Do You Know What Type of Life Insurance You Own?
Many policy owners know they have life insurance but do not know whether the policy is term or permanent.
That distinction matters.
Term insurance provides coverage for a defined period. Permanent insurance is generally designed to provide longer-term coverage and may include a cash value component.
Your life insurance checklist should include understanding:
- What type of policy you own
- Why you originally purchased it
- Whether that purpose still exists
- How long the coverage is expected to continue
- What happens when the current term ends
The source material recommends reviewing whether the policy type still matches your financial needs and long-term goals.
Know When Your Term Policy Expires
If you own term life insurance, find the expiration date.
Do not wait until the final month of coverage to investigate your options.
Depending on the contract, you may have options to renew or convert coverage. However, deadlines, costs, and eligibility rules can vary considerably.
Therefore, reviewing a term policy before it reaches the end of its initial period can give you more time to evaluate your choices.
Ask Whether Permanent Coverage Still Fits Your Goals
Permanent life insurance may be appropriate for certain long-term needs.
For example, some people use permanent coverage for:
- Lifelong insurance needs
- Estate planning
- Legacy goals
- Final expenses
- Business planning
- Certain cash value strategies
However, permanent insurance also requires a longer-term financial commitment.
If you already own permanent coverage, review why you have it and whether the policy is still helping accomplish that goal.
Don’t Ignore Policy Housekeeping
Some of the most important life insurance tasks are also the simplest.
The source checklist highlights several administrative details that policy owners should review regularly.
For example, make sure you know where the policy documents are stored.
A well-designed insurance plan is much less useful if your family cannot find the policy or does not know which company to contact.
Life Insurance Policy Housekeeping Checklist
Confirm that:
- You know where your policy documents are stored
- Your beneficiaries or trusted family members know where to find them
- Premium payments are current
- Your contact information is up to date
- You know the insurer’s name
- You know your policy number
- A trusted person has the insurer’s contact information
- You understand the riders attached to your policy
- You know who to contact if you have questions
These basic steps may make the claims process easier for the people you intended to protect.
Review Your Policy Riders
Many life insurance policies include optional or built-in riders.
Depending on the contract, these may include benefits related to:
- Accelerated death benefits
- Waiver of premium
- Critical illness
- Other additional protections
However, simply having a rider does not mean you understand how it works.
Review what events trigger the benefit, what restrictions apply, and whether using the rider affects the policy’s remaining death benefit or other values.
Has Your Life Changed Since Your Last Review?
Major life events can significantly change your insurance needs.
The source material specifically identifies several events that may warrant a new review.
These include:
- Marriage
- Divorce
- Birth or adoption of a child
- Purchasing a home
- Taking on significant debt
- A major increase or decrease in income
- Starting, purchasing, or selling a business
- Death of a spouse, dependent, or beneficiary
- Approaching retirement
- Recently retiring
If any of these events have occurred, your existing policy may no longer reflect your current financial situation.
Marriage or Divorce
Marriage can increase financial interdependence.
For example, a new spouse may rely on your income, share a mortgage with you, or become part of your long-term financial plan.
Divorce can create the opposite issue. You may need to review whether former spouses remain beneficiaries or whether coverage requirements were established as part of a divorce agreement.
Either event should trigger a policy review.
Having a Child
A new child can substantially increase life insurance needs.
You may now need to account for:
- Childcare
- Everyday expenses
- Years of income replacement
- Healthcare costs
- Education funding
- Housing needs
Additionally, beneficiary and estate planning decisions become more important when minor children are involved.
Buying a Home or Taking on New Debt
A home purchase often adds one of the largest liabilities a household will ever carry.
As a result, you may want to evaluate whether your existing coverage could help a surviving spouse or family manage the mortgage.
The same applies after taking on significant business debt, student loans, or other major obligations.
A Significant Income Change
If your income has increased considerably since you purchased your policy, your original death benefit may no longer provide the same level of income replacement.
On the other hand, if your income needs have decreased, your current coverage may deserve another look.
Either way, the goal is alignment.
Your life insurance should reflect your financial responsibilities today rather than a snapshot from many years ago.
Starting or Selling a Business
Business ownership can create additional insurance needs.
For example, business owners may need to think about:
- Business debt
- Key employees
- Buy-sell arrangements
- Family income
- Ownership succession
- Estate planning
Meanwhile, selling or leaving a business can eliminate some risks while creating new planning opportunities.
Therefore, significant business changes should usually prompt an insurance review.
Retirement Can Change the Purpose of Life Insurance
Retirement often changes the role of life insurance.
Before retirement, coverage may primarily focus on replacing employment income.
After retirement, the purpose may shift toward:
- Protecting a surviving spouse
- Replacing lost pension income
- Addressing changes in Social Security income
- Final expenses
- Estate liquidity
- Legacy goals
- Charitable planning
As a result, retirement does not automatically mean life insurance is no longer necessary.
Instead, it is a good time to ask what purpose the policy should serve going forward.
How Often Should You Review Life Insurance?
The source checklist recommends reviewing your policy within roughly every 12 to 24 months or after a major life event.
An annual financial review can also provide a convenient opportunity to confirm the basics.
You do not necessarily need to make changes every year.
However, checking your coverage amount, beneficiaries, policy status, and key details can help identify problems before they become harder to fix.
Your Annual Life Insurance Checklist
At least periodically, review the following:
- Current death benefit
- Primary beneficiary
- Contingent beneficiary
- Policy type
- Term expiration date
- Premium amount
- Payment status
- Policy riders
- Employer-provided coverage
- Major changes in income
- New debts
- Family changes
- Retirement plans
- Policy document storage
- Insurer contact information
If you cannot confidently answer several of these questions, a more detailed policy review may be worthwhile.
Make Life Insurance Part of Your Overall Financial Review
Life insurance should not exist in a vacuum.
Your coverage can interact with your:
- Retirement plan
- Estate plan
- Beneficiary strategy
- Savings
- Investments
- Debt
- Family responsibilities
- Business interests
Therefore, reviewing insurance alongside the rest of your financial picture can provide a more complete view.
For additional educational resources about insurance, retirement, estate planning, and financial decision-making, visit the Holland Strategic Wealth Advisors financial planning blog.
The Bottom Line
Life insurance does not require constant attention. However, it should not be ignored for years at a time either.
A simple life insurance checklist can help you confirm that your coverage amount, beneficiaries, policy type, and administrative details still reflect your current life.
Most importantly, review your policy after major changes.
If you discover outdated information, unanswered questions, or coverage that no longer matches your financial responsibilities, address those issues before your family needs the policy.
The source checklist summarizes the goal well: identify potential gaps now rather than allowing them to catch you off guard later.
Frequently Asked Questions About Life Insurance Reviews
How often should I review my life insurance policy?
A review every 12 to 24 months can be a useful guideline. You should also review coverage after major life events such as marriage, divorce, having a child, buying a home, a significant income change, or retirement.
What should I check on my life insurance beneficiary designation?
Confirm your primary beneficiary, add a contingent beneficiary when appropriate, and make sure the designations reflect your current relationships and wishes. Pay particular attention after marriage, divorce, births, or deaths.
How do I know if I have enough life insurance?
Consider the income your family may need to replace, mortgage and other debts, childcare, education expenses, final expenses, and long-term financial obligations. Then compare those needs with your existing insurance and other available financial resources.
What happens when a term life insurance policy expires?
Options depend on the specific contract. You may be able to renew coverage, convert the policy, replace it, or allow it to expire. Reviewing your options before the term ends can give you more time to plan.
Do I still need life insurance after I retire?
Possibly. Your need for employment income replacement may decrease, but life insurance may still help address surviving-spouse income, estate planning, final expenses, or legacy goals.
