Just as you schedule an annual health or car maintenance checkup, a year-end life insurance checkup is equally crucial. It serves as an opportunity to review your policy, adjust the coverage if necessary, and ensure that it aligns with your current needs and future goals.

To conduct a comprehensive checkup, consider the following four factors.

Comprehensive review – Review existing coverage to determine whether:

  • The policy is suitable for your needs.
  • Beneficiaries are up to date.
  • The policy still aligns with your goals. 

Changes in life circumstances – Your life insurance needs can change over time. Factors such as marriage, divorce, having a child, buying a house, or starting a new job can significantly impact your life insurance requirements. Changes in your health status or lifestyle habits may also influence life insurance needs.

Financial goals – Reevaluate your financial goals to determine if they have evolved over the year. If so, your life insurance policy should adapt accordingly. Consider long-term goals, such as retirement, a child’s education, or mortgage payments, and assess whether your current policy meets these needs.

Insurance market trends – A year-end life insurance checkup is also an opportunity to stay informed about the latest trends in the insurance market. New products may offer more suitable features or more competitive rates.

Consult a professional

An insurance or financial professional can help offer expert guidance, suggest potential changes, and assist in making any necessary adjustments to your policy.

Remember, life insurance is not a set-it-and-forget-it proposition. It’s a critical financial planning and risk management tool that needs regular monitoring and adjustment.

SWG4868873-1025c This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.