Updating Your Life Insurance to Match Life Changes

Why You Might Need to Adjust Your Policy

Life changes, and so should your life insurance. Updating your life insurance to match life changes ensures you have the right coverage at every stage. Can you change your life insurance policy at any time? Understanding when and how to adjust your coverage is key to financial security. Key reasons to review and adjust your policy include how your life insurance needs change over your lifetime:

Getting married or divorced
Having children or dependents
Buying a home or taking on debt
Changing jobs or income levels
Planning for retirement

Ways to Modify Your Policy

Depending on your needs, you can make the following changes:

Increase or Decrease Your Coverage

Increase coverage after major life events (e.g., new mortgage, growing family).
Decrease coverage if your financial responsibilities lessen (e.g., mortgage paid off, children financially independent).
Some policies allow adjustments without a medical exam, while others may require one.

Convert Term Insurance to Permanent Coverage

Most term policies offer conversion options without medical underwriting.
Permanent life insurance provides lifelong coverage and builds cash value.
Useful for estate planning or securing coverage despite health changes.

Add Riders for Extra Protection

Consider these common add-ons to enhance your policy:

Critical Illness Rider – Lump-sum payout for serious illness.
Disability Waiver of Premium – Stops premium payments if you become disabled.
Child Rider – Provides coverage for your children under your policy.

How Often Should You Review Your Policy?

At least every few years or after major life events.
Check for better coverage options or cost savings.
Consult an insurance advisor to ensure your policy aligns with your goals. Additionally, if you need to make changes, can you change your life insurance beneficiary? Many policies allow updates to beneficiaries to reflect your current wishes.