Need to Review


My Life Insurance Policy?

Do I Need to Review My Plans?

Life happens
while you're making other plans

Many of us have never taken the time to build a financial plan. Even fewer have actually purchased an insurance policy. A life insurance policy can fully protect their family and provide coverage in the event they or their spouse pass away unexpectedly. Just by owning some form of life insurance, you are a member of an elite class of people who have taken steps to prepare for life's uncertainties.

However, after you have built the plan and purchased an insurance policy, life events can happen. Some of these events may be significant enough to merit a review of your insurance policy coverage to make sure it's meeting your current needs.

Take our quiz below to better understand what questions you should ask about your existing insurance policy protection.

family walking together talking about changes that require life insurance policy reviews.

Life Happens Quiz

Since you last purchased a life insurance policy or adjusted your workplace benefits, have any of these events occurred? Check all that apply.
I got married
I bought my first house
I had a new baby
I began adoption of a baby
I changed employer
I started a business
I began to save for college
I changed careers
I got divorced
I started paying for college
I downsized
I retired
  • You may want to review your coverage!

    You've had a lot happen in your life in a few years! It may be a good time to review the considerations we raise below to make sure you still have the right amount of coverage to meet your needs.

  • Worth a close look at your coverage

    We're not surprised you've had major life changes since you last thought about insurance. Read through our analysis and decide if it's time to adjust your coverage to better meet your current needs.

  • You may be in great shape!

    Don't forget to think about the risks in life and periodically consider whether you need different coverage.

Got Married. Congratulations! Couples should consider buying life insurance policies for several reasons. First, life insurance coverage can potentially be less expensive when purchased at younger ages. In addition, if you have not experienced significant health problems there is a chance you may qualify for the best rating class. Also, consider your combined debt. Certain types of debt will remain the responsibility of the surviving spouse or estate of the deceased spouse. The proceeds from a life insurance policy can be used to pay off any debt or cover any type of expenses that the surviving spouse may confront.

Bought a house. A home is a critical asset for your family. Not only is it the largest purchase you will likely make, it can be the most emotionally important asset for a family that has lost a loved one. In a perfect world, you may want to own enough life insurance to enable your spouse or significant other to pay off mortgage loan balances should the insured pass away. Some people will buy a term policy to allow for the beneficiaries to use the proceeds to pay off or reduce any debt they may owe in the event of the insureds death.

Had a baby. Having a baby brings great joy to a family. However, what would happen if one parent passed away? You should consider what future expenses could be covered by an insurance policy that could minimize financial worries during such a stressful time. Those costs could include paying off a debt, providing extra childcare, and providing funds for a child’s future college education.

Adopted a baby. If you are looking to adopt through an agency, you may have to submit proof of some level of life insurance coverage.1 Life insurance can help to provide stability during a difficult time in the case a parent unexpectedly passes away. Be sure to check with your agency to know specific life insurance policy requirements.

Changed jobs. Many times, we count on our employment benefits to provide coverage for emergency situations. However, many of these benefits are discontinued or become your responsibility the minute you leave full-time employment with a company. You should evaluate your new employer’s benefits. Does the new company's plan still cover the same risks? You may want to consider supplementing employer benefits by buying personally-owned life insurance, disability or a supplemental health policy. These individual policies could not only fill any gaps that may exist, but also may give you the independence to pursue new job opportunities in the future.

Started a business. Congratulations on pursuing a new venture! You probably are spending an incredible amount of time making the business work and meeting payroll for your employees. If you have a partner or took loans to start the business, you should think about what would happen to the business if either you or a partner unexpectedly passed away. In the case of one of those very disruptive events, an insurance policy could help cover payroll, pay off loans, or even fund a partnership buyout that could aid in the continuity of management control.

Saved for college. College today can prove dauntingly expensive. Planning how to fund education today makes a lot of sense. Life insurance could be a strong vehicle to partially fund the expense. An insurance policy provides a tax-free lump sum to a named beneficiary that could be used towards funding college in the event of the death of a parent. However, in addition to a death benefit, a permanent life insurance policy can build a cash value each year that can be used for a variety of purposes including education, even if nothing bad happens to either parent before college begins.

Started a new career. Even ten years ago, various reports predict that the average worker will hold between 12 to 15 jobs in their lifetime.2 The pace of change has only increased since then. It's very likely those changes will represent significant changes in careers. Though jobs will change, responsibilities rarely will. Generally, the earlier you buy life insurance, the cheaper it will be and easier to maintain when salaries take occasional dips.

Got divorced. Depending on liabilities, the insured may need less insurance coverage and should review their policy. However, one spouse may depend greatly on future alimony and child care. In that case, the spouse may want to take new insurance on the life of the ex-spouse to protect against loss of income for the duration of the alimony arrangement.

Started paying for college. Even in-state tuition at public colleges present enormous financial burdens for average families. A death in family could jeopardize several tuition payments and disrupt school at an important time for their children. If parents have not saved for college, purchasing a short duration, inexpensive term life insurance policy may alleviate the worry of making tuition payments should a death of a parent occur.

Downsized lifestyle. People move to smaller spaces, and take steps to reduce their expenses most often in anticipation of retirement. This can also mean significant changes in the number of dependents, monthly budget, and ability to accumulate savings for future expenses within a household. This type of major lifestyle shift also presents an opportune time to review existing life insurance policies to adjust to changing family dynamics; and new or different financial needs or goals.

Moving into full-retirement. This is a perfect time to completely review your life insurance policies as this phase of life may bring with it many new needs and goals.

Could Our Term Life Insurance Policy Close Your Gap?

1 A number of adoption services require adoptive parents to show proof of life insurance. For one example, see The Infant of Prague website.

2 "When It Comes to Careers, Change Is a Constant", New York Times

Phoenix does not offer all benefits and lines of business described above. This information is for general education purposes only. You should consult your financial advisor or a licensed independent life insurance agent for details on which products may be right for you. Phoenix does not offer tax, financial, or investment advice.