When to Update Your Insurance Coverage

Life is constantly changing—and so are your financial needs. One area that often gets overlooked is insurance coverage. The policy you set up years ago may not be enough (or even appropriate) for where you are today.

Just as you update your investment strategy, it’s important to regularly review your insurance to ensure it aligns with your current life stage because insurance is not a set it and forget it type of product, no different than your Will.

Why Insurance Reviews Matter

Insurance isn’t just about protecting against the unexpected—it’s about safeguarding the people and goals that matter most to you. As your life changes, your protection should, too.

Key life events that may call for an insurance review include:

Marriage or Divorce – Updating beneficiaries and adjusting coverage for joint or independent financial responsibilities.
Growing Family – Ensuring you have enough life and disability insurance to cover dependents’ needs, education, and household expenses.
Career Changes – Promotions, starting a business, or retirement can shift income and benefits, requiring new protection strategies.
Buying a Home – A mortgage is a major liability that may need additional life insurance coverage.
Retirement Planning – As debt decreases and children become financially independent; your insurance needs often change.

One of the biggest financial risks I see is when people don’t update their insurance as their lives change. Imagine buying a new home with a mortgage much larger than your first one, but still having the same old life insurance policy in place. If something unexpected were to happen, your family could be left struggling to cover the difference. The same is true for income protection. As your salary grows over time, it’s important to increase your life and disability coverage accordingly. Otherwise, your loved ones may not have enough financial support to maintain their lifestyle, pay the bills, or protect long-term goals like retirement or education. Being under-protected doesn’t just create gaps—it can turn what should be a time of security and stability into one of financial hardship.

On the flip side, keeping your insurance up to date brings a tremendous sense of peace of mind. When your coverage matches your current stage of life—whether that’s a bigger home, a growing family, or a higher income—you can feel confident knowing your family will be financially secure no matter what life brings. Instead of worrying about “what ifs,” you can focus on enjoying the milestones you’ve worked so hard to achieve. Proper protection isn’t just about covering risks—it’s about creating the freedom to move forward with confidence.

I want to share a quick story about one of my clients (we’ll call them Mark & Lyndsey to protect their privacy).

When Mark bought his first home many years ago, he was single. He set up life insurance to cover the mortgage in case anything unexpected happened. At that stage of life, it was exactly the right amount of coverage.

Fast forward to today: Mark is now married and the proud father of a two-year-old daughter. With a growing family and plans for more children, he and his wife, Lyndsey (who has taken a sabbatical from work to focus on growing their family), decided it was time to move into their dream home. It was a big step up—beautiful neighborhood, excellent schools, and plenty of space for the years ahead. But with that dream home came a much larger mortgage.

Mark’s circumstances had changed in other ways too. He had advanced in his career and was earning almost twice what he made when he purchased his first policy. Now, with a higher income and two dependents relying entirely on him, his old insurance coverage no longer came close to meeting his family’s needs.

The problem? Until we reviewed his situation, Mark had never updated his coverage. If something had happened, his family would have been left facing a major financial gap. Thankfully, we caught it and made the necessary adjustments to ensure they were fully protected

In Mark’s case, we needed to account for several key factors: replacing his income, paying off the new mortgage, setting aside funds for his children’s future education, and covering final expenses. Altogether, this pointed to a recommended coverage range of roughly $2.5 to $3.2 million. Surprisingly, the cost of this level of protection was only about $88–$134 per month. What many people don’t realize is that when you secure life insurance while you’re still young and healthy, the premiums are often far lower than what most families already pay for their home insurance.

Of course, the exact number depends on lifestyle, existing assets, and whether a surviving spouse plans to return to work. Some families prefer to secure even more coverage for long-term flexibility, while others balance their insurance with investments.

Why This Matters

Mark’s story isn’t unusual. Life moves quickly—new homes, growing families, career changes—and it’s easy to forget that your insurance should grow with you. What fit your needs five or ten years ago may not be enough today.

A Quick Check-In

Here are a few times when it’s smart to review your coverage:

Buying a new home or taking on a bigger mortgage
Getting married, divorced, or welcoming a child
Changing careers or starting a business
Planning for retirement