When should I review my life insurance coverage?

Annual reviews plus event-triggered reviews. Annual: run the DIME calculation with current numbers to check for gaps. Event-triggered: marriage, birth of a child, divorce, home purchase, significant income change, death of a beneficiary, or business changes. Any of these events can dramatically change your coverage need. The most critical trigger: birth of a child often increases need by $300,000–$600,000.

Can I change my life insurance after purchase?

Most term policies are fixed: you can’t increase the face amount without applying for a new policy or policy rider. You can decrease coverage (if the insurer allows) or cancel (no refund of term premiums). Whole life and universal life policies have more flexibility. For significant increases in coverage need, buying a supplemental policy is the typical approach rather than replacing the existing policy.

What if I get divorced — do I need to update my life insurance?

Yes — immediately update beneficiary designations to remove your ex-spouse. Beneficiary designations supersede your will; if your ex is still listed, they may receive the death benefit. Also reassess coverage amount: your financial obligations may have changed (alimony/child support obligations, changed income). Your coverage need may increase or decrease depending on the specific divorce settlement.

How often should I compare life insurance quotes?

Compare quotes when: considering new coverage, after a significant health improvement (weight loss, quit smoking), when your existing term is within 5 years of expiration, or after a major life event. The marketplace changes periodically with new carriers and products. Comparing every 3–5 years or at major life milestones ensures you’re not overpaying for outdated coverage.

What happens if I miss a life insurance premium payment?

Most policies have a 30–31 day grace period after the due date during which coverage remains in force. If payment is made within the grace period, coverage continues without interruption. After the grace period, the policy lapses and coverage ends. Many insurers offer reinstatement within 2–5 years with evidence of insurability and payment of back premiums plus interest. Prevent lapses with auto-payment.

Life Insurance Policy Review: When and How to Reassess Your Coverage

Life insurance isn’t a set-and-forget purchase. Your coverage needs change dramatically with life events: marriage, children, divorce, income changes, mortgage payoff, and children reaching financial independence. Annual reviews and event-triggered reassessments ensure your coverage remains appropriate and your family isn’t left with a gap.

Life Events That Should Trigger Coverage Review

Marriage or domestic partnership: review both partners' coverage; may need new policies or increased amounts
Birth or adoption of a child: typically major increase in coverage need
Divorce: remove ex-spouse as beneficiary; reassess coverage need
Significant income increase: may need to increase coverage to maintain proportional replacement
New mortgage or major debt: coverage should increase to cover new obligations
Death of a named beneficiary: update beneficiary immediately
Child reaching financial independence: may reduce coverage need
Mortgage payoff: may reduce coverage need significantly
Business ownership changes: buy-sell agreements may need updating

Annual Life Insurance Review Checklist

Recalculate your coverage need using current income, debt, and family situation
Compare calculated need to existing coverage — identify any gap
Verify beneficiary designations are current (especially after life events)
Confirm premium payments are being made (auto-pay is current)
Check whether existing term policy is approaching expiration
Review whether health improvements (weight loss, quitting smoking) could reduce premiums if reapplying
Confirm your beneficiaries know the policy exists and where to find it

💡The Annual Review Is 15 Minutes, Worth Thousands

Set a recurring calendar reminder once per year (January works well, alongside tax prep). The annual review takes 15 minutes: run the DIME calculator with current numbers, verify beneficiary designations, and confirm premium payment status. This 15-minute annual investment ensures the policy that protects your family is still appropriate when they need it.

How to Increase Coverage as Needs Grow

Options for increasing coverage after life events: (1) Buy a new supplemental policy — separate policies can stack (one from employer, one purchased, one for specific debt); (2) Exercise policy conversion or rider options if your existing policy includes an option to increase coverage; (3) Replace existing policy with a larger one (requires new underwriting at current age and health). Buying additional coverage immediately after a life event (birth, marriage) is optimal before any health changes occur.

Recalculate Your Current Coverage Need

Use current income, debt, and dependents to see if your existing coverage is still adequate.

Open Life Insurance Calculator →

Life Insurance Policy Review: When and How to Reassess Your Coverage

Life Events That Should Trigger Coverage Review

Annual Life Insurance Review Checklist

How to Increase Coverage as Needs Grow

Frequently Asked Questions

Frequently Asked Questions

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Term vs. Whole Life Insurance: Which Is Right for You?