When And Why To Review Your Life Insurance

Life insurance offers peace of mind by guaranteeing your loved ones' financial protection in the unfortunate event of your untimely death. It is frequently a cornerstone of financial planning. But because life is full of unavoidable changes, the insurance coverage that looked sufficient at one point might not be enough now. Therefore, it's essential to review your life insurance policy on a regular basis. This talk explores why and when to review your life insurance policy to make sure it still fits your goals and needs.

Life Insurance

It is crucial to comprehend what life insurance is before delving into the when and why of reviewing life insurance policies. Life insurance is fundamentally a contract between a policyholder and an insurance provider. When a policyholder passes away, the insurance company pays the designated beneficiaries a death benefit, which the policyholder paid premiums for. The intention is to give beneficiaries or dependents who are still alive financial stability and security.

When to Review Your Life Insurance

Life insurance needs are not static; they change as your life evolves. Recognizing the key life events that necessitate a policy review is essential.

  • Family Changes: Important life events like getting married, getting divorced, having a child, or losing a family member have an immediate effect on how much life insurance you need.
  • Career and Income Changes: Your required level of coverage may change if your income significantly increases or decreases.
  • Purchasing a Home: If you take on debts such as a mortgage, you should review your life insurance policy to make sure it still pays for these obligations.
  • Retirement Planning: Your insurance requirements and financial status may alter as you get closer to retirement.
  • Policy Anniversary: Regardless of life changes, reviewing your policy once a year guarantees that it stays in line with your objectives.

Why to Review Your Life Insurance

There are a number of reasons why you should review your life insurance policy, the most important of which is to make sure that your coverage still meets your needs now and in the future.

  • Adjusting to Financial Obligations: It may be necessary to modify the amount of your coverage to reflect changes in your financial obligations and objectives.
  • Beneficiary Updates: Your list of beneficiaries may need to be updated to reflect your current wishes due to changes in your life.
  • Cost and Performance Evaluation: With some life insurance products, there might be chances down the road to save expenses or boost the performance of your investment components.
  • Changes in Health: Improvements or deteriorations in health can affect your insurance needs and the type of coverage you can obtain.
  • Legislative Changes: The efficacy of your present policy as well as your planning may be impacted by changes in tax laws and other regulations pertaining to life insurance policies.

Practical Steps in Reviewing Your Life Insurance

Assess Your Current Needs: Examine your present financial status, taking into account your income, debts, and dependents.

  • Update Beneficiaries: Make sure the beneficiaries of your policy still correspond to your current desires.
  • Compare Policies: Look into whether there are any more affordable or appropriate policies available.
  • Consult a Professional: A financial advisor or insurance specialist can offer insightful advice catered to your unique situation.


As a dynamic tool in your financial portfolio, life insurance needs to be reviewed on a regular basis to make sure it still meets your changing needs. These reviews are necessary to keep your coverage current and useful, regardless of whether they are brought on by changes in your personal, professional, or financial circumstances. You can protect the financial future of yourself and your loved ones by being proactive and knowing when and why to review your life insurance policy.

In order to make sure that you are sufficiently safeguarded from life's uncertainties, periodic reassessment assists in modifying your life insurance to your present goals and stage of life. Recall that the appropriate time to review your life insurance is not only during important life events but also on a regular basis as part of your overall financial planning strategy. By doing this, you can be sure that your life insurance policy will always provide the safety and comfort you and your family need.

For further information regarding Life Insurance, consult the specialists at Essential Mortgages. Contact us at 0800119929 or via email at info@essentialmortgages.co.nz.

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