How often should life insurance policies typically be reviewed?

Life insurance policies should typically be reviewed every year to ensure they still align with the policyholder's current financial situation, needs, and goals. Regular annual reviews allow the policyholder to assess any changes in their life circumstances, such as marriage, divorce, the birth of a child, or changes in income. These factors can significantly impact the adequacy of coverage and the type of policy that might be suitable.

Additionally, reviewing the policy annually enables the policyholder to stay informed about any changes to the insurance provider's offerings, potential policy benefits or riders that might be added, and shifts in market conditions that could affect policy value. This proactive approach helps ensure that the policy remains relevant and provides the necessary protection for the policyholder's dependents over time. Therefore, an annual review is a prudent practice for maintaining effective life insurance coverage.