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How Often Should I Review My Life Insurance Policy?

When’s the last time you looked at your life insurance policy?


People call me to ask about insurance and I ask them when’s the last time you had a policy review and they will likely say that the last time the policy was out of the box is their closet was when the agent delivered it. That my friend can be a problem. The suit you bought or the dress you bought for your wedding probably doesn’t make sense for you anymore.


When you got your first life insurance policy maybe you were single and you just got a term policy to protect your chance to convert for insurance later. Maybe you had just gotten married and you were planning to have a family so you got a term policy because it was so inexpensive. Perhaps you got a whole life or Universal life policy so you could keep your policy in force forever and maybe stop paying on it.


While all of that has gone by your policy may have yellowed a bit but other things have happened too.


■ Inflation has happened. It would take more than $200 of 2016 money to replace $100 of 1986 money.


■ Beneficiaries change. Marriage, divorce, death and births change who should get the money when you die. Don’t leave it to the courts or allow it to split up your family.


■ Smoking status changes. In 1965 42% of Americans smoked but today less than 17% do. If you quit smoking, we might be able to get you nonsmoker rates even if you have other health concerns.


■ Insurance policies have gone down in price. People are living longer so insurance costs have come down.


■ Old policies often have other things that need to be fixed. Often I find senior citizens still paying for children term policies or there are old addresses.


Sometimes it makes sense to just get a new policy for new features and benefits but that’s for next month…