Life is never static. As you move on, with each change, you may find that your financial needs evolve as well. There is a tendency to file away your policy and not think about it once it has been purchased but It's important to ensure that your life insurance keeps up with the changes in your life. You should review the coverage of your policy on a regular basis to ensure that all of your goals and objectives are still being met.

Experts recommend reviewing your existing policy every few years or whenever a life-changing event takes place. There are a number of factors and life changes that could affect your financial goals. When reviewing your current policy, keep the following points in mind in order to determine if your coverage still suits your needs and requirements:

• Changes in your family situation This could include marriage, divorce, or death of spouse, a new baby or even an adoption. If any of these situations occur, your need for life insurance may change. You might need more coverage or even take out a second term policy. In the case of a birth or adoption, you may have to review the current death benefits to make sure it is adequate. In case you need to increase your death benefits, also check with your agent or service provider to see if your insurance company requires another physical examination before increasing your coverage levels.
• Changes in income If you have a new job or a promotion, your income may have changed. It is recommended that you change your term life policy based on your income. Insuring yourself and your family for 10 times the amount of your income is generally advised. If your spouse stays at home with the kids, be sure to insure your spouse as well.
• Changes in expenses - You have purchased a new home, started a college fund or even started a new business.
• Changes in the amount of debt In case you have taken out a large home equity, auto or other type of loan and there has been an increase/decrease of debt, you might need to review your policy.
• Changes in savings Once you retire, you have a clearer idea of how much cash you will need and what your financial situation is going to be. In case you plan to or have started a retirement fund, it might be time to revisit your coverage.
• Changes in health Sudden illness or an accident that leaves you immobile for months will have an effect on job as well as your savings. A health crisis can alter your insurability almost overnight forcing you to purchase more insurance or a different mix of insurance policies. Keep in mind though that it is better to retain your term policy before your next move, especially if the policy is guaranteed renewable.
• Changes in the policy If a renewal is anyway on the horizon, it may pay to shop around before deciding to automatically renew your existing policy. Comparison shop to learn about the new rates and features available at the time. If you are approaching maximum renewable age and you are going to lose your term coverage soon, it is the best time to talk with your insurance agent to explore new options.

On the flip side, the changes in your life need not always imply a raise of premiums. In the event that you may have retired, your children may have married and completed their education, your mortgage might be paid off, you might actually be able to lower your life insurance coverage and premiums. Speak to your insurance agent or company about conversion privileges or the possibility of expanding your death benefits so they can be used while you are still living.

In conclusion, a proper policy review can also help ensure that:

• Your coverage is in keeping with your financial goals and obligations
• Your interests as well as your beneficiaries have been kept in mind
• Your beneficiary designations are current and up-to-date
• Your policy is cost-effective for your individual situation

By scheduling an annual policy review appointment, you could save yourself a whole lot of time, effort and money. And remember, it's better to discuss all your options and talk frankly with your agent as you may just end up with a better deal than before.