End-of-Year Life Checkup: Review Your Coverage
Shana Brinson
Rethinking Life Insurance as the Year Closes
As the year winds down, many of us find ourselves in a reflective mood, pondering the events of the past months. The holiday season often ushers in not just festive cheer, but also a natural pause to reassess various facets of our lives. This timing coincides perfectly with the open enrollment period, providing an ideal backdrop to rethink our life insurance needs. Life seldom follows a predictable path, and sometimes our existing policies may no longer fit our current realities. It’s worth acknowledging that priorities and responsibilities can shift subtly over time—an adjustment in coverage might be more relevant than you realize.Key Life Changes That May Affect Coverage Needs
Assessing your life insurance annually should be a priority, as it ensures that your coverage aligns with your current life circumstances. Here are some significant life events that might necessitate a review of your policy:- Welcoming a Child or Grandchild: New additions to the family inevitably come with increased financial responsibilities that may necessitate higher coverage.
- Adjusting Beneficiary Designations or Estate Plans: As your beneficiaries change or your estate plans are updated, it's crucial that your life insurance reflects these changes.
- A New Job, Promotion, or Retirement: Changing income levels affect your financial landscape and can alter how much life insurance you need.
- Buying a Home or Taking on New Financial Obligations: Acquiring a mortgage or other debts might require additional coverage to provide security.
- Getting Married or Divorced: Changes in marital status often bring about new financial priorities and responsibilities.
- Changes in Health, Income, or Long-term Financial Goals: Improvements or declines in personal health, income variations, or shifts in financial plans can influence your insurance needs.