Most people buy life insurance and never look at it again. That is how families end up underinsured, with outdated beneficiaries, or paying for coverage they no longer need. According to LIMRA, 41% of U.S. adults say they don't have enough life insurance. An annual review catches these gaps before they matter.
Here are the 7 things to check. The full life insurance policy review checklist takes about 30 minutes and can save your family from a painful surprise.
Done in seconds. No sign-up required.
Work through each item once a year. If any of these have changed since you last looked, your policy probably needs an update. See life events that trigger a review for when to do this outside your annual check.
Compare your current death benefit against your family's actual needs: outstanding mortgage, other debts, income replacement for 10 to 15 years, and future costs like college tuition. If your income or family size has grown, your original coverage amount may fall short.
Check both primary and contingent beneficiaries. Life changes like marriage, divorce, a new child, or a death in the family can make your designations wrong. Beneficiary designations on your policy override your will, so an outdated listing means the payout goes to the wrong person.
Term life is cheapest but expires. Whole life builds cash value but costs more. Universal life offers flexibility but can lapse if underfunded. If your needs have shifted (for example, you now want permanent coverage for estate planning), review whether your current policy type still makes sense.
Most term policies let you convert to permanent coverage without a medical exam, but only within a specific window. If your health has declined and you want lifelong coverage, converting before the deadline closes is one of the most valuable options on your policy. Check your contract for the exact date.
Riders like disability waiver of premium, accidental death benefit, or child term riders add cost. Review each one. A disability waiver may have been critical when you were your family's sole earner but less necessary now. Drop what you don't need; add what you do.
If you've quit smoking, lost weight, or improved a health condition since you bought the policy, you may qualify for better rates. Some insurers offer re-evaluation. You can also lower costs by reducing coverage that no longer matches your needs or dropping riders you've outgrown.
A life insurance policy is only as good as the company behind it. Look up your insurer's AM Best rating (free at ambest.com). A rating of A or higher means strong financial health. If the rating has dropped below A-, it may be time to shop for a replacement policy while you're still insurable.
The biggest barrier to reviewing life insurance isn't laziness. It's not knowing where to start. "Review your policy" sounds important but vague, so it gets postponed indefinitely. That is exactly how coverage gaps form.
A checklist turns an intimidating task into a 30-minute annual habit. You don't need to be an insurance expert. You just need to check 7 specific things and act on what's changed.
If you skip it entirely, the consequences add up quietly. Read about what happens when you skip a life insurance review to understand the real cost of inaction.
The hardest part is remembering to do it. Set a life insurance review reminder for once a year, and when it fires, open this checklist and work through the 7 items. That is the entire system: a reminder plus a checklist, once a year, 30 minutes.
BoldRemind will email you in advance and keep reminding you until you mark the task done. No app to install, no account to create.
At least once a year, and any time you experience a major life change like marriage, divorce, a new child, a home purchase, or a job change. Annual reviews catch slow-moving gaps like inflation eroding your coverage amount or a beneficiary designation that no longer reflects your wishes.
Not updating beneficiary designations. According to LIMRA, 41% of U.S. adults feel underinsured, and outdated beneficiaries are one of the most frequent causes of payouts going to the wrong person. A divorce or death can leave an ex-spouse or deceased person listed as your primary beneficiary.
A common rule of thumb is 10 to 15 times your annual income, but the right number depends on your debts, your dependents, your spouse's income, and future obligations like college tuition. If your income or family size has changed since you bought the policy, the original amount may no longer be adequate.
It depends on your situation and your policy's conversion window. Term policies often include a conversion option that lets you switch to whole or universal life without a medical exam. If your health has declined or you want lifelong coverage, converting before the window closes can be a smart move. Check your policy for the deadline.
Look up your insurer's AM Best rating. A rating of A or higher means the company has strong financial health and is likely to pay claims. You can check AM Best ratings for free at ambest.com. If your insurer's rating has dropped below A-, consider shopping for a new policy.
Possibly. If you've quit smoking, lost weight, or improved a health condition since your policy was issued, you may qualify for better rates. Some insurers offer re-evaluation. You can also reduce premiums by lowering coverage you no longer need or dropping riders that are no longer relevant.
Free. No account. Get reminded once a year to review your life insurance, then use this checklist to do it in 30 minutes.
Set Life Insurance Review ReminderLast modified: