Annual Life Insurance Review Checklist

Most people buy life insurance and then forget about it. You pay your premiums and assume everything is sorted. But when did you last check if your coverage still makes sense for your life today?

What exactly is an annual life insurance review? It’s taking a close look at your existing policy to make sure it still fits your situation. Even if nothing major has changed in your life, reviewing your policy each year is worth doing. You’re checking whether your coverage amount, beneficiaries, and policy type still make sense for your goals. Your life changes, and your insurance should change with it.

With the New Year just around the corner, now is a great time to start a habit of reviewing your Life Insurance every January.

This guide will show you exactly how to review your life insurance policy each year. We’ll cover the life events that should prompt you to take another look at your coverage, and help you get the most value from the policy you’re paying for.

Life Events That Should Prompt a Review

Life has a way of changing when you least expect it. When these changes happen, your life insurance coverage needs to keep up with your new reality.

Consider what happens when you get married. Suddenly, you have someone depending on your income. If something were to happen to you, would your spouse be able to cover the mortgage, bills, and daily expenses? Marriage creates new financial responsibilities that your old policy might not address. Having children changes everything even more. Whether through birth or adoption, you’re now responsible for someone’s entire future.

Property decisions also affect your insurance needs. When you buy a home in Toronto, Vancouver, or Calgary for example, you’re taking on a significant financial commitment. Your family would need enough money to keep the house or pay off the mortgage if you weren’t there to provide for them. On the other hand, if you’ve sold property or finally paid off your mortgage, you might not need as much coverage as before.

Your career matters too. Changing jobs often means losing your group life insurance benefits. You’ll need to replace that coverage with your own policy. Getting a promotion or changing careers can also affect how much insurance you need. If your income goes up significantly, your family will need more money to maintain their lifestyle.

Moving between provinces won’t cancel your policy, but you do need to update your address to keep everything current. Starting a business, selling one, caring for aging parents, or getting ready for retirement are all times when you should take another look at your coverage.

These life changes can feel overwhelming. That’s where working with a licensed insurance advisor becomes valuable. They can help you figure out how your coverage should evolve as your life changes.

Step-by-Step Annual Life Insurance Review Checklist

A systematic approach to your annual review helps ensure nothing gets overlooked. The beginning of the year is a great time to do it. Here’s exactly what you need to check during your next assessment:

1. Evaluate Coverage Adequacy: Does your death benefit cover your current financial obligations? Most experts recommend coverage of at least 5-7 times your annual net income. Add up your debts, including your mortgage, and consider how long your family would need financial support.

2. Verify Beneficiary Designations: Check that your beneficiaries are still correct, especially after relationship changes. Keep in mind that minors cannot directly receive benefits in Canada—you may need to establish a trust.

3. Examine Policy Type: Is your current policy still the right fit? If you have term life insurance, check when your conversion deadline expires and what options you have. Your needs at 35 with young children differ from your needs at 55 with a paid-off mortgage.

4. Review Riders: Look at any add-ons you’ve included with your policy. Do you still need that waiver of premium rider? Would a critical illness or guaranteed insurability rider make more sense now? Sometimes what seemed important years ago no longer applies.

5. Check Cash Value Performance: For whole life or universal life policies, how is your cash value performing? Is the growth meeting your expectations and supporting your financial goals?

6. Assess Financial Strength: Your insurance company needs to be around when your beneficiaries need to make a claim. Check your insurer’s ratings from agencies like A.M. Best, Fitch, or Standard & Poor’s.

7. Consider Health Improvements: Have you quit smoking, lost significant weight, or improved your blood pressure? These health changes could qualify you for better premium rates.

Whether you’re in Vancouver, Toronto, or Halifax, or anywhere in between, working with an insurance broker can help you spot issues you might miss on your own.

How to Make the Most of Your Review

Getting ready for your review makes all the difference. Gather your policy documents, statements showing your current debts, and a list of your assets before you start. You’ll have a much more productive conversation with this information at hand.

Think about what you’re unsure about with your current policy. Are you clear on who owns the policy? Do you understand how the beneficiary designations work? What about succession planning if you have a business? Write these questions down so you don’t forget to ask them.

Your policy type might not suit your situation anymore. Term life insurance works well when you’re young with a mortgage and growing family. But what if your mortgage is paid off and your children are financially independent? Permanent life insurance might make more sense now, or you might need less coverage altogether.

Set a date each year to review your policy and stick to it. Whether you choose your birthday, the start of the year (2026 is almost here, now’s a great time!), or your policy anniversary, consistency matters. Put it in your calendar just like you would any other important appointment.

Health problems don’t have to stop you from getting better coverage (if you need it). No-medical exam life insurance policies are available across Canada, though they typically cost more and have lower coverage limits.

Working with an insurance advisor can be worth it. They can spot problems with your current policy that you might miss and suggest alternatives that could save you money. Insurance brokers across Canada have access to multiple insurance companies, so they can compare options for you.

Keep notes from each review. What did you change? What questions came up? This creates a record you can refer to next year and helps you track how your insurance needs evolve over time.

Bottom Line

Your life insurance needs change as your life changes. That’s why reviewing your policy each year matters, even when everything seems stable.

The checklist we’ve covered gives you a clear path to follow. Major life events like marriage, having children, buying a home, or changing jobs should prompt an immediate review. But even without big changes, an annual check-up ensures your coverage still makes sense.

Getting organised before your review makes the whole process smoother. Gather your policy documents, debt information, and asset details. If you’re dealing with health concerns, remember that no-medical life insurance options exist for quicker approval.

Setting a regular review date – whether annual or twice yearly – helps you stay on top of your coverage. Professional guidance can be valuable here, especially when looking at complex features like riders or cash value performance.

Life insurance does more than protect your family. It can fund business plans, cover debts, or create a legacy. Whatever your situation, treating your insurance review as seriously as other financial check-ups protects what matters most.

After your review, write down what you found and any follow-up actions needed. This creates a record for next time and helps ensure your coverage continues to serve its purpose as your life unfolds.

At Maple Bay, we understand that keeping your insurance current gives you peace of mind. Our brokers can guide you through your annual review and help you find coverage that fits your changing needs.

Contact us today if you need assistance with reviewing your life insurance policy, or if you need to make any changes.

Frequently Asked Questions

1. How often should I review my life insurance policy? It’s recommended to review your life insurance policy annually. This ensures your coverage remains aligned with your current circumstances and financial goals, even if you haven’t experienced major life changes.

2. What key life events should prompt an immediate life insurance review? Major life events that should trigger a review include marriage, divorce, having children, buying property, starting a business, changing jobs, experiencing significant income changes, or moving to a new province.

3. What should I check during my annual life insurance review? During your review, evaluate your coverage amount, update beneficiaries, assess your policy type and term, check premium affordability, review any riders, examine cash value growth (if applicable), consider recent health changes, and verify your insurer’s financial strength.

4. How can I prepare for my life insurance review? Gather all relevant documents, including policy statements, current debt listings, and asset information. Make notes about any aspects of your policy you’re unsure about, and consider setting calendar reminders for future reviews.

5. Should I involve a professional in my life insurance review? Yes, involving a qualified insurance advisor can be valuable. They can help identify potential policy weaknesses, explore cost-efficient alternatives, and provide guidance based on your current situation and future goals.