Life Insurance Policy Review Checklist

Here is a checklist table for reviewing your life insurance policy annually:

Checklist Item	Details
Coverage Amount	Is the current coverage adequate? Consider changes like mortgage or children.
Beneficiaries	Have you updated beneficiaries? Add contingent beneficiaries as necessary.
Policy Type	Is the current policy (term/whole) still the right fit for your needs?
Premiums	Are the premium payments affordable based on your current financial situation?
Riders	Do existing riders (e.g., accidental death, critical illness) still apply? Add or remove as needed.
Policy Performance (for whole life)	Check cash value accumulation, dividends, and other performance indicators.
Tax Considerations	Are there any changes in tax implications? Review for withdrawals or estate planning.
Health and Lifestyle Changes	Have health or lifestyle changes occurred that could lower your premium?
Company Stability	Is your insurer financially stable? Confirm they are able to pay future claims.

Regularly reviewing your life insurance policy is essential for maintaining financial security and ensuring the policy aligns with your current needs. Here’s a detailed checklist to guide you through your annual review:

1. Coverage Amount

Check if the coverage is still adequate: Consider life changes like buying a house, having children, or retirement.
Assess your financial obligations: Are your mortgage, education expenses, or other debts covered?

2. Beneficiaries

Update beneficiaries: Life events such as marriage, divorce, or the birth of a child may require updates.
Consider contingent beneficiaries: Review who would receive the benefit if your primary beneficiary is unable to.

3. Policy Type

Evaluate if the policy type still fits your needs: Is your term policy nearing expiration, or should you switch to whole life insurance?
Convertible options: For term policies, check if there is an option to convert to a permanent policy without a medical exam.

4. Premiums

Ensure premiums are affordable: As your financial situation changes, make sure your premium payments are sustainable.
Look for potential discounts or adjustments: Sometimes health improvements or changes in risk factors can reduce premiums.

5. Riders and Additional Features

Review existing riders: Riders like accidental death benefits or critical illness coverage should be reassessed annually.
Add or remove riders: Based on life circumstances, you might want to add new riders or remove unnecessary ones.

6. Policy Performance (for Whole Life)

Check cash value accumulation: Whole life policies accumulate cash value, which can be used for loans or other financial strategies.
Review dividends: If you have a participating policy, dividends might change yearly, impacting your policy’s value.

7. Tax Considerations

Understand the tax implications: Review the tax status of your policy and its payouts, especially if you’ve made withdrawals.
Estate planning: Ensure your policy supports your estate plan and doesn’t create unexpected tax liabilities.

8. Health and Lifestyle Changes

Assess your health: Life insurance premiums are influenced by health. If your health has improved, you might be eligible for a better rate.
Lifestyle changes: Factors like quitting smoking or changing careers can reduce risks and potentially lower your premiums.

An annual life insurance policy review ensures that your coverage aligns with your financial goals and life changes. By revisiting your policy regularly, you’ll avoid any unpleasant surprises and can better secure your family’s financial future.