When is it advisable to reassess life insurance coverage?

Reassessing life insurance coverage when there is a change in health status is advisable because an individual's health can significantly impact their insurance needs and premiums. Changes in health—such as a serious illness or a major improvement in one’s health—can result in the need for additional coverage or adjustments to existing policies. For example, if someone develops a serious health condition, they might require more coverage to ensure that their beneficiaries are adequately provided for. Conversely, if they improve their health, they may qualify for lower premiums or different policy options.

Additionally, reassessing in light of health changes allows individuals to adapt their financial planning and security strategies based on their current health and life circumstances, ensuring that their life insurance adequately meets their needs and those of their dependents.

Other options, like reassessing only at policy renewal, do not account for real-time changes and might miss critical opportunities to make adjustments. Similarly, reassessing once every five years could be too infrequent to capture necessary adjustments in coverage. Additionally, waiting until after a claim is filed can be too late to make meaningful changes to coverage and could result in inadequate provision for beneficiaries.