How Often Should You Review Your Life Insurance Policy?
Life insurance provides reassurance that your loved ones will be financially protected if the unexpected happens. It is the safety net that helps families maintain stability during life’s most difficult moments.
However, the policy you took out several years ago may no longer suit the life you lead today. A growing family, a new home, a change in career or income can all affect how much protection you really need.
Just as your priorities evolve, your life insurance should evolve too. Regularly reviewing your policy helps ensure it keeps pace with your lifestyle, supports your financial goals, and continues to give you and your family the peace of mind you intended when you first took it out.
Why Reviewing Your Policy Matters
When you first took out life insurance, it was likely based on your financial responsibilities, family situation, and income at the time. Over the years, these factors can shift significantly. A review allows you to check whether your policy still provides the right level of cover or if adjustments are needed.
Failing to update your policy could mean being underinsured, leaving your family without adequate financial support, or paying for more cover than you need.
When Should You Review Your Life Insurance Policy?
As a general rule, it is worth reviewing your policy every few years. However, there are key life events that make a review especially important:
Buying a home or remortgaging – A larger mortgage may require increased cover to ensure your family can remain in the home if you were no longer here.
Marriage or civil partnership – Combining finances or shared responsibilities means reassessing how your policy supports your household.
Having children – New dependants often mean additional costs for childcare, education, and daily living expenses.
Career or income changes – A pay rise, new job, or self-employment can all affect the level of cover you need.
Health or lifestyle changes – If you have stopped smoking, lost weight, or made other positive lifestyle changes, your premiums may be reduced.
Divorce or separation – If your circumstances change, you may need to adjust beneficiaries or reduce joint policies.
Approaching retirement – Your financial commitments may lessen over time, meaning you can adapt or simplify your policy.
What to Look For in Your Review
When revisiting your life insurance, take time to assess:
The amount of cover – Does it still match your outstanding debts and your family’s financial needs?
The term – Will your policy still be in place for as long as your dependants rely on you financially?
Policy type – Does your current policy (term, whole-of-life, or family income benefit) still suit your situation?
Premium affordability – Are your monthly payments still manageable within your budget?
Beneficiaries – Are the named recipients still correct and relevant to your wishes?
Additional Benefits: Does your policy include extra benefits such as Terminal Illness or Premium Protection Cover of you are too ill to work?
Small updates can make a big difference in ensuring your loved ones are properly protected.
Should You Replace or Update Your Existing Policy?
If your review shows that your cover no longer fits, you may be able to amend your current policy or take out a new one. Before cancelling an existing plan, check whether your provider allows changes to your cover or term. You should also ensure that new cover is in place before ending the old policy, so there is no gap in protection.
It can be helpful to speak with a financial adviser who can review your circumstances and explain your options clearly.
Final Thoughts
Life insurance is not a one-off purchase. It should grow and adapt with you as life changes. Reviewing your policy regularly means you can stay confident that your loved ones will always be protected in the right way.