Life insurance offers long-term protection in case the worst happens, but having a policy just in case doesn’t mean you should set it and forget it.

If you’ve already bought life insurance, great work – you’ve taken a big step toward securing your family’s financial future. The next step is keeping tabs on your policy, so you can make sure it continues to meet your needs. It’s smart to run the numbers again from time to time with a life insurance calculator and confirm that you have the right amount of coverage to protect those you love.

How often should you review your life insurance policy?

Most people have different life insurance needs at different stages of life. Here are some milestones that can change your insurance needs:

You Get Married

Marriage means being responsible for each other’s well-being, and your partner may struggle to maintain their quality of life if they’re suddenly left to pay all the bills. Revisiting your life insurance policy after your wedding can help make sure your partner isn’t burdened financially if the worst happens.

You Have Kids (or More Kids)

Whether you’re having your first child or adopting your third, a growing family means more expenses and, often, more debts to pay down. Make sure your coverage can replace your day-to-day expenses if you pass away. It’s also good to consider larger expenses that may come up later, like college tuition.

You Buy a House

Taking the plunge into homeownership? Life insurance can protect your investment during the years you’re paying off your mortgage. Since this is probably the biggest debt you’ll incur in your lifetime, you’ll want to make sure your policy keeps you covered the whole time and will allow your family to keep up with mortgage payments if needed.

You Take On Other Debt

Whether it’s a new car or business, home renovations, medical bills, or credit cards, life has a way of throwing curveballs. Double-check your coverage when you take on another big purchase, so you can rest easy knowing that your loved ones won’t be overwhelmed with debt later.

You Get a New Job or Raise

Don’t just recalculate life insurance when big expenses come your way – it’s also important to make updates when your income changes. Earning a raise or landing a higher-paying job means your family is now counting on a bigger paycheck, so review your life insurance to make sure they can maintain that quality of life.

Your Kids Leave for College or Become Financially Independent

After your kids are grown, your expenses will probably undergo some big changes and maybe even decrease. If you’re nearing the end of a term life policy, it might make sense to replace it with a smaller final expense policy once your term life insurance expires. Also known as funeral insurance, final expense is designed to help older adults cover the cost of a funeral, burial, medical bills, or other end-of-life needs.

You Become Responsible for a Parent’s Finances

As relatives get older, you may find yourself helping them manage their finances. In some cases, they may start depending on your support or income. If you find yourself with more dependents or parents who need you, ensure that your life insurance can handle any extra responsibilities you might leave behind.

Your Health Changes

If you’ve made positive changes in your health (like losing weight or finally kicking that smoking habit), that’s another great reason to take another look at your insurance company’s policy. For example, if you originally bought an accidental death benefit or no medical exam plan because of health issues, you might now be able to buy a term life plan that provides a higher payout to cover all your family’s needs.

How to recalculate your life insurance needs

Confirming that you have adequate life insurance coverage starts with revisiting your financial situation and future goals. A good rule of thumb is to check your coverage once a year, just to be safe.

Take into account your:

• Age and state of health
• Family situation, including any partners/spouses, children, and other dependents, like aging relatives
• Income and other assets, such as savings, investments, or any inheritance
• Day-to-day expenses
• Remaining debts, including mortgage, car or student loans, and credit card debts

Need help getting started? Our Learn & Plan term life insurance calculator will create a personalized payout for you based on your unique circumstances and needs.

No matter where you are in life, making sure you have the coverage you need offers peace of mind for the future.

At Fidelity Life, we have a wide variety of products that support people at every stage. To learn how we can give you the security you need, get in touch with us to talk to an agent today.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.