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BetterWealth
January 14, 2026
Reviewing your life insurance policy doesn’t have to be complicated. At its core, a policy review is simply about making sure your coverage still fits your life, finances, and goals.
Over time, things change—your income, family size, debt, or priorities. If your policy hasn’t been reviewed in years, it may no longer provide the protection or benefits you expect. Regular check-ins help you confirm your coverage amount, update beneficiaries, and understand how features like cash value or riders are performing—so there are no surprises later.
At BetterWealth, we believe proactive policy reviews help keep your wealth aligned with your goals. When your life changes, your life insurance should change with it. Reviewing your policy isn’t just paperwork—it’s a way to take ownership of your financial future.
In this guide, you’ll learn:
By the end, you’ll know exactly how to review your life insurance policy and feel confident it still has your back.
Knowing what’s in your life insurance policy helps you make better choices. You need to know what kind of coverage you have, the terms, and what paperwork to keep handy. If you get this stuff down, your plan will work better.
You’ll usually see two main types: term and whole life.
Some policies mix things up with extra features. Knowing what you’ve got helps you figure out how it works and what your family can expect later. To decide which structure is best for your current life stage, read our deep dive on Whole Life vs. Term Insurance.
Here are a few basics you’ll want to know:
Knowing these terms, you’ll easily follow your policy and catch details that could impact your benefits.
Keep these somewhere safe (and where you can actually find them):
Having all this together makes reviews and updates easier.
Your life insurance needs don’t stay the same forever. Checking your policy makes sure it fits your current situation and financial goals. It keeps your family protected, your plan efficient, and helps you avoid nasty surprises.
Significant life changes can mean you need more or different insurance. Getting married or divorced changes who relies on you. Kids? That’s a whole new set of responsibilities.
Buying a house, switching jobs, or starting a business all shake up your finances. Health changes or getting older can impact your premiums or your options. After any of these, it’s smart to look at your policy and ensure it still fits.
When you check your policy regularly, you can:
These reviews help you avoid paying for stuff you don’t need, or worse, not having enough coverage. You’ll feel better knowing your policy matches your long-term financial plan.
Ignore your policy long enough, and things can go sideways. Your coverage might end up too low, or your beneficiaries might be out of date. If you miss updates, you could lose benefits or pay more than you have to. And if you don’t spot better options, you’re just leaving money on the table.
Skipping reviews can mean gaps in your protection, especially when life changes fast. Making time for a review now and then can save you a lot of headaches later.
Reviewing your life insurance policy isn’t rocket science. You’re just checking your paperwork, beneficiaries, coverage amount, and payment schedule. Doing this helps you ensure your policy still fits your life and money goals. Go through each part and you’ll avoid most surprises.
First up, collect everything tied to your life insurance: the original policy, recent statements, riders, amendments, proof of payments, and the summary.
Carrier Financial Ratings: Verify your insurance company’s current financial strength rating from agencies like A.M. Best or Standard & Poor’s. A policy is only as good as the company’s ability to pay the claim decades from now. If their rating has dropped significantly since you purchased the policy, it may be time to explore a more stable provider.
Having everything in one spot makes things way easier. You’ll see your policy type, term or whole, and what benefits or limits you have. If you can’t find paper copies, ask your insurance company for digital ones.
Now, look at who’s listed as your beneficiaries. These people will get the insurance money when you’re gone. Double-check their names, contact info, and how they relate to you. Life’s messy, with marriages, divorces, kids, and losses, so this info gets outdated fast. Wrong details can slow things down or even cause legal headaches for your family.
Update your beneficiaries if necessary. It’s a quick way to protect your loved ones and gain peace of mind.
Ask yourself if your coverage amount still makes sense. Consider debts, mortgage, dependents, and future needs like college or retirement. Maybe your kids are grown or your income has changed. Adjusting your coverage keeps you from being underinsured or overpaying. If you find your current term coverage is insufficient, consider how The AND Asset approach uses overfunded whole life to provide both protection and liquidity.
Also, know what your policy covers. Whole life builds cash value; term only pays if you pass away within the term. Understanding this helps you see if your policy fits your long-term goals.
One often overlooked benefit of a policy review is the chance to lower your premiums through a medical re-evaluation. If you have lost significant weight, quit smoking (for at least 12–24 months), or seen an improvement in a chronic health condition since your initial underwriting, you may be eligible for a better "risk class." This could significantly lower your premiums for the same amount of coverage.
Look at what you’re paying and how often. Are the premiums manageable? Do you pay monthly, quarterly, or annually? This matters for your budget. Some policies have fixed premiums, and others go up. If payments are getting tough, talk to your provider. Regular reviews are a pillar of proactive Wealth Management and Estate Planning to ensure your legacy remains protected.
You might find ways to cut costs or pick a better payment schedule. Staying on top of this keeps your policy active and your family protected.
If you own a permanent policy, your review should look beyond just the "Cash Value" number. Ask your carrier for an In-Force Illustration. This document shows how the policy is actually performing compared to the original projections. Check the Internal Rate of Return (IRR) on both the cash value and the death benefit to ensure it remains a competitive component of your wealth strategy.
Life changes. A lot. And your finances do too. That means your life insurance might not fit like it used to. You’ve got to look at the big life events and money shifts to make sure your coverage still does the job.
Big milestones? Time for a policy check. Marriage or divorce changes who counts on you. Kids or caregiving? You might need more coverage. Retirement is a big one. Maybe you want to support your spouse or cover final expenses without dipping into other savings. Moving or switching jobs can also shake things up.
Review your policy after these changes so your protection stays on point. If your goals change, like wanting to leave a legacy or help with college, update your policy to match.
Your financial health matters for life insurance. New debts, like a mortgage? Your policy should cover those. Paid off big loans? Maybe you can lower your coverage and save some cash. If your income increases, you might want more coverage; if it drops, you might need to scale back. Built up savings or investments? That could change how much insurance you actually need.
Life insurance isn’t just about protection; it can be a piece of your financial puzzle. Policies from places like us can offer both security and cash value growth. Regular reviews keep everything working together.
With the federal estate tax exemption scheduled to drop significantly in 2026, your policy review must include a "Tax Exposure Check." If your death benefit—combined with your other assets—exceeds the projected $7 million individual threshold, your family could face a 40% federal estate tax. During your review, ensure your policy ownership (such as using an ILIT) is optimized to keep these proceeds outside of your taxable estate.
When you review your life insurance, don’t skip the extras. Riders, conversion options, and coverage for your family can all change your protection and flexibility.
Riders are add-ons you can tack onto your policy for more benefits. They cost extra but can be worth it. Popular ones: waiver of premium (lets you skip payments if you’re disabled), accidental death (extra payout if an accident’s involved).
If you remove a rider, you’ll save on premiums, but you might give up some protection. Check if a rider still fits your life. Maybe you don’t need an accident rider anymore if your job isn’t risky. Always weigh the pros and cons.
Term life insurance runs out after a set period. Many term policies let you convert to permanent coverage, and no new health exam is needed. That’s a lifesaver if your health changes or you want cash value. Before converting your policy, it is vital to understand the tax implications of life insurance payouts to avoid unnecessary income tax.
Check when and how you can convert. Some policies let you do it whenever, others only during a specific window. Converting costs more, but sometimes it’s the right move for lifelong coverage or if you want to build savings.
You can add coverage for your kids or dependents, usually with child term riders. These are cheap and can sometimes convert into whole policies later. Make sure these riders still fit your family.
You might want to drop the extra coverage as your kids grow up or become independent. Some policies let you add protection for other dependents, like a disabled adult child. Tweak these as needed; small changes can make a big difference without wrecking your budget.
It’s easy to make mistakes when checking your life insurance policy; some can bite you later. Watch out for things like letting your coverage lapse, missing updates, or not knowing what your policy does. Avoid these, and you’ll keep your protection solid.
A classic mistake? Not checking if your policy’s still active. Miss a premium payment or forget a deadline, and your coverage can disappear without warning. A lapse means your family loses financial protection right when they might need it.
To steer clear of this:
If your policy lapses, you might have to start over with new medical checks or pay higher premiums. That’s a hassle and could leave you unprotected. Regular reviews help you catch these issues before they get serious.
Your insurer needs your up-to-date contact info to send bills, updates, or notifications about changes. If your phone number, email, or address is old, you could easily miss something important.
Try to:
That way, you won't be caught off guard by missed payments or policy changes. BetterWealth suggests confirming your information during your annual review. It seems like a simple step that can save a lot of hassle.
Life insurance policies can hide a lot in the fine print, especially what they won’t cover. These exclusions or limitations might affect when (or even if) your beneficiaries get a payout. If you skim past them, you might assume you’re covered for things you’re not.
Some things to watch for:
It’s worth knowing these details so you’re not blindsided later.
Honestly, going through your life insurance policy can get overwhelming. If your financial situation changes, marriage, kids, or a new house, it’s probably time for a check-in. Life doesn’t stay the same, so your coverage shouldn’t either. If your policy makes your head spin or you’re unsure about the benefits, a professional can break things down. For instance, figuring out how cash value grows or when you can borrow from your policy is way easier with expert help.
Maybe you’re curious about advanced strategies, like using overfunded whole life insurance to protect and build wealth. BetterWealth shares insights on these approaches if you want to get creative.
Some good times to reach out:
A pro can help you spot missed benefits or areas for improvement, looking out for your future. It’s a low-pressure way to get your questions answered and advice that fits you. Honestly, reviewing life insurance isn’t just about paperwork. It’s about making choices that support your financial future, whatever that looks like for you.
You should review your life insurance policy at least once a year or whenever a major life event occurs. Regular reviews ensure your coverage still meets your needs and keeps your beneficiaries and financial goals aligned.
Key times to review your policy include:
Even if nothing major has changed, an annual check-in can help you catch administrative errors, track cash value growth, and evaluate whether policy riders are still relevant.
Bottom line: Regular reviews prevent surprises, ensure your policy evolves with your life, and give you confidence that your life insurance still protects what matters most.
Life changes fast, and your life insurance policy should keep up. Try to review your coverage every year or after significant life events, such as marriage, kids, or a new home, you name it. That way, your policy keeps pace with your needs. Look at your beneficiaries. Are they still the people you want to support? Life shifts, relationships change, and your policy should reflect that. Also, check your policy’s death benefit and cash value to see if they align with your goals.
If you’ve got whole life insurance, keep an eye on the premiums and how the cash value grows. Some policies, like those under The And Asset® approach from us, might give you more flexibility and benefits for your money.
When you review your policy, keep a few questions handy:
If something doesn’t feel right, contact your agent or advisor. Staying proactive helps your policy become a real tool in your wealth strategy.
Staying on top of your life insurance ensures that your policy grows with your life, not against it. Reviewing key details like your beneficiaries, premiums, and coverage amount gives you peace of mind and helps you avoid costly oversights.
Whether you’ve had a major life change or just want to make sure everything still fits your financial plan, you can simplify the process by talking it through with a pro. Just click the big yellow button to talk with a coach and take the guesswork out of your policy review.
When you review your life insurance, focus on your coverage amount, who benefits, how the policy fits your money goals, and whether its rules still work for you. Checking the cash value and updating for significant life changes are also key to keeping your helpful policy.
Check how much coverage you actually have and whether it matches your needs right now. Think about debts, income replacement, and big future expenses, such as college and retirement. See if your policy type still fits your goals. Term, whole life, or indexed universal life all work differently. Also, look at your premium payments and how they fit with your budget.
Start by listing all named beneficiaries and their contact info. Make sure your choices reflect your current family situation, spouses, children, or trusts. Check if the beneficiary designations work with your estate plan. If a beneficiary has passed away or changed, update the policy immediately.
Compare premium costs to your income and expenses. If your budget’s changed, you might need to adjust coverage or even switch policy types. Look at your cash value or investment inside the policy and see if it’s growing as expected. If not, that could impact your plans.
Review your policy documents to see coverage limits, premium schedules, and any riders or extra benefits. Make sure expiration dates, convertibility options, and cash value growth still make sense for where you are in life. A financial advisor can help you sort through the terms if you get stuck.
Look at your policy’s cash value statements over several years. Check growth rates and compare them to your expectations or other investments. Consider tax benefits and how you can access or borrow against the cash value. Maybe now’s the time to see if an overfunded whole life policy, like BetterWealth recommends, fits your goals better.
Let your insurer know immediately if something big happens, like getting married, divorced, having a child, or losing someone close. These events can change who needs coverage or who should get the benefits. It's a good idea to talk things over with your financial advisor or legal team. They'll help you sort out your policy details and ensure everything aligns with your estate plan. BetterWealth's there too if you want some extra guidance through the process.
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