Couple with baby reviewing life insurance with agent.

When to review your life insurance coverage

If it's been a while since you've done a life insurance policy review, now may be a good time for a life insurance checkup.

Performing an annual review of your life insurance can help you keep track of your coverage over time and serve as a reminder to check and see if it’s still meeting your needs. In addition to that, whenever there’s a life event that significantly impacts your family or your finances, there’s a good chance it may impact your life insurance needs as well.

Consider reviewing your life insurance coverage during these key life moments:

Adjusting your income

Have you found a better paying job? Did you receive a promotion? Have you decided to go part-time instead of full-time? A change to your income may also result in a change for your life insurance needs.

Getting married

Sharing a life together typically means more than just sharing your living quarters, it can also mean sharing your finances as well. Whether just one of you are working or both of you are, one way to help protect your spouse’s finances, should you pass, is by having life insurance that can help pay for immediate needs, such as funeral expenses, and ongoing items, like a mortgage or car payment.

Having/adopting a child

Each time a child is added to your family, your household will generally experience a financial impact and may count on you to help provide for their needs. So whenever there’s a new addition to your family, consider reviewing your life insurance coverage. Life insurance can help continue paying for ongoing expenses, such as daycare costs, and future expenses, like helping pay for a child’s education.

Buying a home

New homes typically come with new mortgages. So if you’re buying a new home, consider whether your current life insurance coverage would be able to provide enough financial assistance for a surviving spouse or partner to either cover the monthly mortgage payments or possibly pay off the mortgage entirely.

Opening a business

Opening a business can affect your finances. As such, the passing of you or a business partner can have a considerable impact on the business. One way to help prepare for business continuity and lessen the impact of loss is through key employee life insurance.

Getting divorced

Consider reviewing your life insurance when getting divorced as you may find that your needs have changed, as well as your beneficiaries. If children are involved, you may want to consider how life insurance can assist with education expenses and child support payments if you were to pass away.

Coming into money

Perhaps you just found out that a long-lost relative passed away and left you a rather substantial amount of money. Or maybe you just won the lottery. Whatever the case may be, coming into money can significantly change your finances as well as your lifestyle which can also be a reason to review your life insurance coverage.

Providing care for a loved one

Providing care for a loved one, such as an aging parent or a child with special needs, often includes providing financial support for them as well. If you have a loved one who depends on you financially, whether they live in your home or live in an assisted living facility, consider revising your life insurance coverage to help cover the costs of replacing your support in the event of your death.

While there are many events throughout our lives that can trigger a life insurance review, our State Farm® agents are available to help.

You can get a life insurance quote now, or give us a few details and a State Farm agent will reach out to you.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Bloomington, IL

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