Broker Check

How often should you review your life insurance coverage?

June 21, 2023

This is a question that I get quite frequently when talking to clients and prospects. The truth is that it really depends on you and your financial situation. It's my option that any major life changes would be a good reason to go through a review, but you need to make sure that you are looking at it at least annually. Review the amount of coverage, the type of coverage, and your beneficiaries. The amount of coverage may vary for several reasons; like a change in income or debts, a new child, or starting a new business. The type of coverage is also unique to your financial situation. You may get more coverage for less money with a term policy, but it may not ultimately be the best choice for you as it only lasts for a certain period of time. On the other hand, the cost of a permanent policy may be prohibitive for your budget. And finally, reviewing your beneficiaries is a good idea just to ensure that your have the correct beneficiaries listed (this is not exclusive to life insurance - make sure you review your 401(k), IRA, bank account, or any titled assets). Life insurance is a big part of your financial plan and so just like your annual plan to review your financial goals and accounts, make sure that you spend some time with your life insurance as well.

This Blog Was Created By Baron Financial Group, LLC.