4 Reasons to Review Your Life Insurance Policy Before 2023

Like regular dental appointments, it's a good idea to schedule an insurance review.

If you're earning more money now than you did when you first took out life insurance, you may find that the face amount of the policy is not sufficient to cover the loss to your beneficiaries if you die. Let's say you were earning $50,000 annually and renting an apartment. Today, you're earning twice that amount and own a home.

Reviewing life insurance involves looking over what you have and determining if that amount is still enough to take care of the people you care about when you're gone. If you have a family, figure out if your current policy will be enough to pay outstanding debts and accomplish other goals you've set for yourself, like sending children to school. Consider the following four reasons you may benefit from a year-end review of your life insurance policy.

1. Your life might have changed in other ways

If any of these life changes have occurred in 2022, it's time to make sure your life insurance reflects them:

• Marriage
• Divorce
• New child
• New business
• Caring for additional family members, like your parents or grandparents

2. You've made lifestyle changes

If you've stopped smoking, skydiving, hang gliding, cave diving, or any other activity that may have driven your life insurance premiums up, now is the time to let your agent know. You may receive a premium discount.

3. Discounts are sweet

Speaking of discounts, if your premiums are a bit steep but you're insured by a company that also provides auto or homeowners insurance, now's a good time to learn how much bundling will save you. While it may feel like a hassle to switch, the savings is up to 25% with some insurance carriers.

4. Agent expertise

It's natural to be busy -- especially this time of year. However, it takes very little time to call your insurance agent and request a review. Ask your agent to offer suggestions, ways you might be able to improve coverage.

One caveat: Never buy coverage you don't need. In fact, if your agent tries to push you into an expensive policy that nets them a big commission, you know you're with the wrong agent. If it's necessary to make changes to your policy or if you need additional coverage, make sure you understand what you're committing to and that you are totally comfortable with the purchase.

There's no denying that a life insurance review will be one of the least exciting things you do this year. However, it may just be one of the most important.