You bought a $250,000 life insurance policy ten years ago when you were single and renting an apartment. Today, you’re married with three children and a $450,000 mortgage. That policy you thought provided solid protection now covers barely half your mortgage and provides nothing for income replacement during the 18 years until your youngest reaches adulthood. Life insurance isn’t a purchase you make once and forget about for decades. Your coverage needs change dramatically as your life evolves through marriages, children, career growth, home purchases, and all the financial obligations that accumulate over time.

Regular policy reviews ensure your coverage still matches your current reality rather than the circumstances from years ago when you first applied. Most people never review their policies after purchase, leaving families to discover inadequate protection exactly when they need it most. In this blog, we will understand when to review or update your life insurance policy.

Major life events: review life insurance fast

Certain life changes should trigger a life insurance review within days or weeks—because beneficiaries, debts, and dependents can change overnight.

Marriage

• Update beneficiaries immediately. Most people want a spouse as the primary beneficiary, not parents listed from their single phase.
• Coordinate coverage as a couple. Each spouse should have their own policy based on their contributions (income or unpaid household/childcare work).
• Set a clean beneficiary order. Spouse as primary; parents or other family often shift to contingent.

Divorce

• Remove an ex-spouse as beneficiary (unless legally required). Beneficiary designations usually override a will, so outdated forms can result in money being sent to the wrong person.
• Follow court orders exactly. Some divorce decrees require keeping coverage to secure child support or alimony—keep that policy structured as required, but update everything else.
• Rebuild the plan for kids. If you have children, recheck your guardianship/trust planning to ensure proceeds are managed correctly.
  

Birth or adoption of a child

• Increase coverage for a new dependent. A new child adds years of support needs and typically increases both the amount and duration of coverage.
• Extend your timeline. Your coverage period usually needs to last until the youngest child is financially independent (often beyond 18 if college is a goal).
• Fix beneficiary structure. Avoid naming minor children directly; consider a trust or a guardian arrangement to manage funds responsibly.

Death in the family

• Replace any deceased beneficiary. If a listed beneficiary passes away, update forms right away to avoid delays or payout complications.
• Re-check contingents. Ensure there’s always a backup beneficiary.

Financial changes: adjust coverage amounts

Home purchase, bigger mortgage, or refinance

• Match coverage to your debt reality. A higher mortgage means higher financial risk for survivors.
• Aim to protect housing stability. Many families’ size coverage so the home can be paid off (or payments can be comfortably managed) during a difficult transition.
  

Significant income change (up or down)

• If income rises: Increase coverage so it replaces current lifestyle and obligations—not an old salary from years ago.
• If income drops: Rebalance coverage to stay affordable, but try to keep a minimum baseline—needs don’t disappear just because income temporarily dips.
  

Starting a business / becoming a partner

• Add business protection, not just family protection. Business ownership can create needs like buy-sell funding and key person coverage.
• Recalculate personal coverage. Business income and responsibilities can increase what your family needs if you’re gone.
  

Receiving inheritance or major assets

• Reassess whether needs have changed. A large asset boost can reduce income-replacement needs, but it can also create new planning needs (such as liquidity, taxes, or equalization among heirs).

Quick review checklist (use anytime)

• Beneficiaries: Still correct? Any ex-spouse/minors/deceased beneficiaries listed?
• Debts: Mortgage, loans, business liabilities updated?
• Dependents: New child, aging parents, special needs considerations?
• Coverage fit: Amount and duration still match your real-world obligations?

The three-to-five-year routine review rule

Even without major life events, review all your life insurance coverage every three to five years as part of regular financial planning. Inflation erodes the buying power of fixed death benefits over time. The $500,000 policy that adequately covered needs in 2015 might only replace $375,000 worth of expenses in 2025 after a decade of inflation. Your coverage amount should keep pace with rising costs of housing, education, and living expenses. Your career likely progressed even without dramatic promotions, gradually increasing your income and your family’s financial security over the years.

Health naturally changes as you age, and once you develop chronic conditions like diabetes, heart disease, or cancer, adding new coverage becomes expensive or impossible. Reviewing coverage while you’re still healthy gives you the opportunity to increase death benefits before health changes eliminate that option. Many term policies include conversion features that let you switch to permanent coverage without a medical exam, but these conversion rights expire after 10 to 20 years. Review your policy to understand if you have valuable conversion options approaching expiration that might benefit you if your health declines.

Term policy conversion deadlines and expirations

Most term life insurance policies include conversion privileges allowing you to convert to permanent whole life or universal life coverage without new medical underwriting during a specified window, typically the first 10 to 20 years of your term. However, if you develop serious health conditions that make you uninsurable and you still need coverage beyond your term expiration, conversion preserves your insurability at your original health rating. Evaluate this before the conversion window closes because once it expires, the option disappears permanently.

Term policies expiring within the next few years require attention if you still need coverage. Apply for a new term policy while your current coverage remains active to avoid dangerous gaps. If your health has changed since your original policy, new coverage might cost significantly more or be unavailable. Shopping early lets you understand your options and costs before your current protection ends. Some people discover they no longer need coverage by the time their term expires, because their children are independent and their retirement savings are adequate, making renewal unnecessary.

When to increase or decrease coverage

Several situations require increasing your life insurance coverage beyond your current amounts. Adding additional children increases support obligations and extends your coverage timeline. Purchasing a more expensive home with a larger mortgage adds debt that your family must handle. Significant income increases from promotions or career changes mean protecting the higher earnings that your family now depends on. A working spouse who stops working to stay home with children shifts the family to a single income, requiring higher coverage for the working spouse. Taking on substantial debt beyond your mortgage, such as business or major personal loans, increases obligations that require coverage. Beginning to support aging parents financially adds dependents to your protection calculations.

Conversely, some life situations allow reducing coverage or letting policies expire because needs genuinely decreased. Children reaching financial independence and establishing careers eliminates their dependency on your income. Paying off your mortgage removes major debt from coverage calculations. Accumulating substantial retirement savings provides your surviving spouse with resources beyond life insurance. A stay-at-home spouse returning to work adds income, reducing the family’s dependence on a single income. Major life insurance needs end as you approach retirement with independent children and a paid-off home, meaning coverage serves its purpose and naturally terminates.

What to review in your existing policies

Pull out your actual policy documents and verify several critical items during each review. Check that all beneficiaries are up to date and reflect your wishes. Many people discover their beneficiaries still list an ex-spouse, deceased parent, or minor children directly instead of through trusts. Calculate whether your coverage amount remains adequate for current needs using 10 to 15 times your current income plus outstanding debts. Verify that premiums are affordable within your current budget and that they are paid on time. Confirm your policy hasn’t lapsed due to missed payments.

Review any riders or additional features you purchased to understand what they provide and whether you still need them. Verify that your insurance company still maintains strong financial strength ratings from agencies such as AM AM Best, Moody’s, or Standard & Poor’s. Companies with declining financial ratings might struggle to pay claims decades from now when your family needs benefits. Understanding what your policies actually say, rather than relying on memory of when you bought them, prevents surprises later.

Health changes affecting your coverage options

Major health diagnoses change your insurance landscape dramatically. Developing cancer, heart disease, diabetes, or other serious conditions makes purchasing new coverage expensive or completely unavailable. When you receive a significant diagnosis, immediately review your existing coverage to understand what you have and whether you can increase it. Some policies allow purchasing additional coverage or adding riders without new medical underwriting during specific windows. Maximize your existing coverage while you can before health prevents any changes.

Even if you can’t increase coverage after health declines, reviewing what you have helps you and your family understand the protection in place and whether it adequately addresses their needs. If your coverage is insufficient and health prevents adding more, your family can adjust financial plans knowing the limitation rather than discovering inadequate coverage after your death.

Where Beem Life Benefit fits your review

Beem offers straightforward life coverage with benefit options of $500 or $1,000 designed specifically for funeral expenses. During your policy reviews, you might identify that your comprehensive term insurance provides income replacement and mortgage coverage but offers nothing specifically for immediate funeral costs that arise before larger policies process claims. 

Adding Beem coverage fills this gap with accessible protection requiring no medical exams or complex underwriting. Your family receives immediate funds for funeral deposits and first-week expenses while you wait for your larger insurance claims to be completed. Apart from health and life insurance, Beem offers plans to protect against job loss, car theft, and theft of personal devices. Download the app here.

Setting up your review schedule

Schedule annual beneficiary verification as a simple 15-minute task each year, perhaps on your birthday or New Year’s Day. Review beneficiaries on all life insurance policies, retirement accounts, and other accounts with death benefit provisions. Complete full comprehensive coverage reviews every three years, examining death benefit amounts, policy features, premium costs, and whether coverage still matches current needs. Immediately review coverage after any major life event, including marriages, divorces, births, home purchases, career changes, or family deaths, rather than waiting for your scheduled review cycle.

Add recurring reminders to your calendar, or include policy reviews in your annual financial planning. Treat life insurance review with the same importance as tax preparation or retirement account rebalancing. Your family’s financial protection deserves regular attention, ensuring the coverage you’re paying for actually serves its purpose when needed. Life insurance review takes perhaps two hours every few years, a minimal investment ensuring your family has proper protection matching current circumstances rather than outdated situations from years ago.