Reviewing the life insurance you already have

When replacement is and is not in your interest

Replacing an existing policy starts a new contestability period, may trigger surrender charges, and resets the cost of insurance at your current age. It can make sense when the old policy is about to end, is badly underfunded, or when a much better health class is now available. State regulations require replacement forms and disclosures for a reason: it is frequently sold when it should not be.

Why coverage through work is usually not enough

Employer group life is typically one or two times salary, is not portable when you leave, and can end at retirement. It is a helpful base, not a plan. An individual policy you own goes with you between jobs and can be sized to the actual need rather than to a benefit formula.

Do you still need life insurance in retirement?

Sometimes. A surviving spouse who would lose a pension or the larger Social Security check may need income replacement. Final expenses, a mortgage still owed, or a plan to leave money to children or a charity are other reasons. If none apply, letting a term policy end can be the right answer. A policy review looks at what would actually happen to the survivor’s budget.

The five checks

1. Total coverage vs. needRe-run the arithmetic: income years, debts, education, final costs, minus assets and existing coverage.
2. Term end dates and conversion deadlinesA 20-year term bought at 40 ends at 60. The conversion window may close earlier.
3. BeneficiariesPrimary and contingent, on every policy. Life changes; forms do not update themselves.
4. Lapse riskUniversal life policies in particular can be underfunded. Request an in-force illustration.
5. Riders and costsAccidental death, waiver of premium, child riders: still needed?