You realize the true value of life insurance when you understand that it provides a safety net for your loved ones in case the unexpected happens — and it’s not something you can just set and forget. As your life progresses and changes, you’ll need to review your existing life insurance coverage and make adjustments that appropriately accommodate what your life, family and financial responsibilities look like at any given time. You will always want to make sure you have the right kind of coverage and that your policy aligns with your current financial goals.

When to Review and Update Your Life Insurance Policy 

You should review and update your life insurance policy whenever one of the following happens:

Major Life Events 

Major life events usually require making adjustments to your policy. These milestones signal financial changes in your life, as well as new responsibilities and concerns. These life events include:

• Marriage
• New baby/adoption
• Retirement
• Divorce
• Deployment
• Job loss
• Death of a family member

Annual Policy Checkups 

Even without a major milestone, it’s a good idea to check your policy once a year. Updates to pay structures, benefits, or entitlements can impact your financial security, making it important to review your policy regularly. An annual review also helps ensure your coverage keeps pace with inflation and that your beneficiaries are up to date.

Changes in Military Benefits 

Your military benefits can change from year to year, and these may affect your income or lifestyle. Whether it’s increasing your deployment entitlements or updating your retirement plan, changes in your military benefits might signal a need to update your life insurance policy. 

Benefits of Reviewing Life Insurance Coverage

Regularly reviewing your life insurance policy allows you to align your coverage with your current life circumstances to provide the best protection for your loved ones. 

Here are some of the key benefits of conducting routine life insurance reviews:

Guaranteed Financial Stability for Your Family

Life insurance will help provide the funds your family needs in the event of your passing, from covering funeral expenses to maintaining their standard of living. Regular policy reviews can give you peace of mind that the death benefit will cover essential expenses such as mortgage payments, daily living costs, and future financial goals like your children's education.

Keeping Pace with Life Changes

Major life changes can significantly impact your insurance needs. By regularly reviewing your policy, you can update coverage amounts or modify beneficiaries accordingly. This proactive approach ensures that your policy remains aligned with your current responsibilities and financial objectives.

Peace of Mind

The inherent risks associated with active-duty service make life insurance especially important for servicemembers. Regularly reviewing your policy means you can focus on your job knowing your family will be adequately protected and taken care of in your absence.

Estate Planning Considerations

Reviewing your life insurance policy and communicating what it means to your family will help keep your beneficiaries up-to-date, while also ensuring it aligns with your overall estate planning. This can help minimize potential conflicts among  your loved ones and ensure that your assets are allocated according to your wishes during a vulnerable and challenging time.

How to Review and Update Your Life Insurance Policy 

Here’s how to get started reviewing your life insurance policy and making updates.

Assess Your Current Policy 

First, you’ll want to look closely at:

• The adequacy of your coverage. Is there enough to cover your lost pay and take care of your loved ones in the event of your death?
• Your current health status. It might be a good idea to secure additional insurance while you’re still healthy.
• The current cost of premiums and whether you can still afford them.
• Your policy’s terms and limitations.

Identify Coverage Gaps 

If any of the major life changes discussed above have occurred, it could cause gaps in your coverage. For example, you may have signed up for your policy while you were young and single, but now you’re married and in the middle of your career, with a family that counts on your financial support. Once you’ve assessed your policy, see if you need more insurance to cover a larger (or smaller) family’s income needs when you’re gone.

Consult with an Insurance Expert 

When you’re ready to make an update, or if you just want to understand your policy better, it’s a good idea to consult an expert who specializes in insurance for military servicemembers to make sure you have all the coverage you need. By establishing a relationship with a military insurance expert early on, you’ll be better able to ensure you’re appropriately covered through all the stages of your life.

Explore Your Life Insurance Options with AAFMAA

Protect your loved ones with life insurance that meets the unique needs of your military lifestyle. AAFMAA proudly serves the military with advice, planning, insurance, and more.

Contact us today to learn more about our life insurance offerings and Membership benefits.