As a new year approaches, many people naturally start thinking about what they want to improve or organize in their lives. Financial planning often comes to mind, whether that means reviewing savings, setting new goals, or simply getting more clarity around important decisions. One area that is worth revisiting at this time of year is life insurance.
You do not need to have all the answers. Asking the right questions can help you understand whether your current coverage still makes sense and what steps may be helpful going into the new year.
Do I Know What My Life Insurance Is Meant to Do?
Life insurance serves different purposes for different families. For some, it is about replacing income. For others, it is about paying off a mortgage, covering final expenses, or protecting long term savings. Before the new year begins, it helps to be clear about what you want your policy to accomplish.
If you are unsure what role your life insurance plays in your overall plan, that is a good place to start.
Has Anything Changed in My Life This Year?
Life does not stand still. Changes such as a new job, a change in income, marriage, divorce, the birth of a child, or children becoming financially independent can all affect how much coverage you need.
Even positive changes can mean your policy should be reviewed. Asking yourself what has changed over the past year can highlight whether your coverage still fits your current situation.
Would My Family Be Financially Comfortable Without My Income?
This is not an easy question, but it is an important one. Consider how your family would manage everyday expenses, housing costs, education plans, and long term goals if your income were no longer there.
Life insurance is designed to provide stability during an already difficult time. Asking this question now can help you determine whether your current coverage is enough to support the people who depend on you.
Do I Understand the Features of My Policy?
Many people purchase life insurance and never revisit the details. Over time, it is easy to forget what the policy includes. Some policies offer features such as living benefits that allow access to funds during a serious or chronic illness.
Understanding what your policy can do today may reveal benefits you did not realize you had. It may also show areas where additional protection could be helpful.
Are My Beneficiary Designations Still Correct?
Beneficiary choices should reflect your current wishes. Life events such as marriage, divorce, the birth of children, or the passing of a loved one can all make an update necessary.
Before the new year begins, it is a good idea to confirm that your beneficiary designations are accurate and up to date. This small step can help avoid confusion and delays later on.
Am I Relying on Coverage That May Not Last?
Some people rely solely on life insurance provided through work. While employer coverage can be helpful, it is often limited and may not follow you if your job changes.
Asking whether your coverage is portable and sufficient on its own can help you decide if additional personal coverage makes sense.
Starting the New Year With Clarity
You do not need to make major decisions before the calendar changes. Simply asking these questions can help you start the new year with greater clarity and confidence. Life insurance planning does not have to be complicated, but it should be thoughtful.
At Landau Insurance Brokers in Los Angeles, we help individuals and families review their coverage and understand their options. If you would like to start the new year with a clearer understanding of your life insurance, we are here to help.
