Buying life insurance gives you the peace of mind knowing that your family will be financially protected if something happened to you. But your policy isn’t a “set it and forget it” product. It’s not something you are thinking about on a regular basis, so it can be easy to forget. Out of sight, out of mind, right?

After purchasing a life insurance policy, it should be reviewed every few years and especially after any major life changing events. Just as our life changes, our life insurance needs change.

» Calculate: Life insurance needs calculator

Here are seven common events in which you may want to review your policy to ensure you have adequate life insurance coverage.

1) Marriage or Divorce

Getting married soon? Now that your family is growing and you will be sharing finances with another person, your life insurance needs may change. Many couples rely on two incomes to pay day-to-day expenses. If you died prematurely, your spouse would soon feel financial struggle in addition to the emotional and physical devastation from losing you. Term life insurance will provide income replacement in the event of premature death.

Are you contemplating a divorce? There are a number of financial issues to think about and life insurance should be on this list. Update your beneficiaries if necessary. There have been horror stories of people dying and never removing their ex-spouse as the primary beneficiary. If you remarry, this is also a time to review your policy.

» Learn more: Divorce and Your Changing Life Insurance Needs

2) Home Purchase

Did you and your spouse decide to purchase a new home together? Review your policy to see if your coverage amount is enough to also pay off a mortgage. Again, paying expenses is manageable with two incomes, but could your spouse afford to pay for the house all alone? Especially if you have children ensuring they can stay in the home they are familiar with can mean a lot when dealing with the death of a parent.

Maybe you’re purchasing a second home; a vacation home in Florida, for example. With all the excitement going on, don’t forget to review your life insurance. Any time your housing status changes, it’s time to review.

3) Child or Dependent

We all know that raising a child is a huge expense and making sure they are financially taken care of is a must. Anytime you add a child to your family, you want to look at your coverage. There’s always an option of purchasing an additional term life insurance policy that will carry you through your kids’ college years.

After purchasing a life insurance policy, it should be reviewed every few years and especially after any major life changing events. Just as our life changes, our life insurance needs change.

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4) Employment Change

Did you get a promotion? Along with a big promotion, maybe you decided to get a nicer car or bigger home. Maybe this means you are now sending your children to the best private school money can buy. Do you need more life insurance coverage?

Maybe you got a new job at a different company. Did you have a group life insurance plan with your old job? What benefits does your new job offer? If life insurance isn’t one of them, you need to re-evaluate your life insurance situation. Any job change brings the need to review your policy.

5) New Loan

Taking out a loan means more debt. If the loan is large enough to cause financial stress to your loved ones if you die, think about modifying your policy. A car loan is a good example of an instance where you may consider reviewing your life insurance. You don’t want this debt passed on to your loved ones.

» Learn more: How to Use Life Insurance to Cover Your Debt

6) Beneficiary Changes

Another instance where you want to think about changing beneficiaries (besides marriage, divorce and dependents) is if your main beneficiary passes away. Many people buy life insurance while they are single and name their parents or even grandparents as beneficiaries. Or, perhaps you named someone a beneficiary because they co-signed a loan for you. Once that loan is paid off you may want to change your beneficiary designation.

7) Health Changes

Have you been on a new health regime? Eating healthier and working out 30 minutes a day? Congratulations, you may qualify for new life insurance rates. It may benefit you to re-apply. Quitting smoking, lowering your cholesterol or blood pressure, are just a few examples of when a health change can affect your rates for the better.

» Learn more: Quitting Smoking and Its Affect on Life Insurance

If your health declines you do not need to worry if you already have life insurance. If you have been paying your premiums and your policy is in force, a negative change in your health will not affect your rates. This is one of the most important reasons why buying life insurance sooner than later is best.

These aren’t the only events that could cause you to review your policy, but some of the more common ones. By actively reviewing your policy every few years, you can ensure that you have adequate coverage to meet your needs and lifestyle.

If you don’t have life insurance, it’s easy to run term life insurance quotes on Quotacy to see how much it would cost to financially protect your loved ones. We don’t ask personal information until you are ready to commit.

» Compare: Term life insurance quotes

Photo credit to: Kat Grigg

Related Posts:

Reviewing Your Life Insurance Policy

How to Designate Beneficiaries on Your Life Insurance Policy

When Should I Increase My Life Insurance?

About the writer

Headshot of Jeanna Simonson, Life Insurance Marketing Content and Social Media at Quotacy, Inc. in Minneapolis, Minnesota.

Jeanna Simonson

Marketing Content and Social Media

Jeanna is a writer and the Ambassador of Buzz at Quotacy. She has been researching and writing educational articles on the importance of life insurance since 2015. When not writing for Quotacy, you can find her scoping out the newest fitness and beauty trends for her own blog, Fiercely Fetching, or traveling and spending time with her husband and fur babies. Connect with her on LinkedIn.

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