Purchasing life insurance isn’t a “set it and forget it” task. Neither is naming your policy’s beneficiary. Over time, your life changes, and so do the potential financial needs of your loved ones.
In addition, various people will come in and out of your life. So, it is important to make sure that you not only review your life insurance coverage on a regular basis, but that you also ensure that those who are named as your beneficiaries are still the ones that you want to receive the proceeds.
For example, if you should get divorced, would you still want your ex-spouse to inherit the funds? And, if you have a growing family, would you want only some of your children or grandchildren to receive the proceeds if the new family members weren’t named in the policy.
It is typically recommended that you review your insurance coverage at least once each year. But, if you have any type of major life change – such as marriage or divorce, the birth or death of a close family member, or the purchase of a new home (with a mortgage obligation) – then you should review all of the key aspects of your life insurance coverage – including who you have named as the beneficiaries.