Annual Life Insurance Policy Review Checklist

Why Annual Reviews Matter

Your life changes every year — your salary may increase, you may have new children, you may pay off debts or take on new ones. Your life insurance should evolve with your life.

An annual review ensures your coverage stays aligned with your needs and that you're not paying for too much or too little protection.

Review Checklist

Coverage amount: Is your death benefit still sufficient given current income, debts, and dependents? Use the DIME formula to recalculate.

Beneficiary designations: Are your primary and contingent beneficiaries still correct? Have there been births, deaths, marriages, or divorces since your last update?

Policy health: For permanent policies, is the cash value growing as expected? Are policy costs in line with original illustrations?

Premium payments: Are you paying the optimal premium? Could you save by switching carriers if your health has improved?

Life changes: Have any major events occurred — new home, new child, new business, salary change — that warrant coverage adjustments?

When to Take Action

If your review reveals a significant gap between your current coverage and your calculated needs, take action promptly. Shop for additional coverage while you're healthy and rates are lower.

Don't cancel existing coverage before new coverage is in place and past the contestability period. Maintaining continuous coverage protects you against unexpected health changes.