Review the need
Update debts, dependents, income needs, care costs, business obligations, assets and existing coverage. A policy may be too small, too large or mismatched in duration after a major change. Beneficiary details deserve their own check, including the issues covered in the life insurance beneficiary guide.
Review the contract
Confirm premium amount, due date, level period, renewal schedule, riders, beneficiaries and ownership. For permanent insurance, review guaranteed and current values, loans, interest and any risk of lapse. During the review, confirm the cost and purpose of all life insurance riders.
Add this to the review
- Request an in-force illustration when applicable.
- Check whether conversion rights expire.
- Confirm automatic payment details.
- Save insurer correspondence.
Replacing a policy requires care
A new contestability period, surrender charges, new underwriting and lost guarantees can make replacement costly. Keep existing coverage until the new policy is issued and accepted, and review required replacement notices.
Create a one-page policy dashboard
Record policy number, owner, insured, beneficiaries, benefit, premium, level period, conversion deadline, riders, loans and insurer contact. Add the date each item was confirmed. This makes changes visible without replacing the contract itself.
Use trigger reviews as well as annual reviews
Review after marriage, divorce, birth, death, business changes, a large loan, retirement or an employment change. Permanent policies also need review after a loan or material change in credited values.
Add this to the review
- Request written confirmation of changes.
- Keep old and new beneficiary records.
- Check the payment account after bank changes.
- Recalculate the coverage need before adding insurance.
Know which document answers which question
The declarations page summarizes current coverage, the policy and endorsements define rights, the annual statement reports current values, and an in-force illustration models future performance. A sales illustration from issue does not replace any of them.
If documents conflict or a provision is unclear, ask the insurer for a written explanation tied to the policy section. Store that response with the contract for the next review.
Example review
An annual statement shows a loan that the original illustration did not include. The owner requests an in-force illustration with the current loan and another showing repayment, then compares the premium and lapse date rather than relying on the issue-year projection.
Run a two part annual review
The household review asks whether the amount and duration still match dependents, debts, income, care work, business obligations and available resources. The contract review asks whether the policy can still deliver that protection. Keeping these reviews separate prevents a policy statement from replacing a needs analysis.
For term coverage, check the level period, renewal schedule and conversion deadline. For permanent coverage, add cash value, loans, withdrawals, credited amounts, charges and in force projections. Confirm ownership and beneficiary records for every policy. End the review with specific actions, an owner and a due date rather than a general note to revisit later.
Add this to the review
- Recalculate the financial need.
- Confirm current contract status and guarantees.
- Verify owner and beneficiary records.
- Assign every follow up action a due date.
Example review
Review example: A policy can be fully paid and active but no longer match the family need after a divorce or new child. Contract health and planning fit are different questions, and both must pass.
Sources for the checklist
Use this checklist to organize a review, then confirm each item in the application, illustration, policy or insurer record named below. Use the life insurance glossary for plain-English contract definitions.