As we approach the end of the year, it’s a natural time to reflect on the past months and plan for what’s ahead. The holiday season — combined with the open enrollment period — makes this the perfect moment for an end of year life insurance review.
Life can change quickly. A policy that fit your needs a few years ago may no longer provide the right level of protection today. That’s why an annual life insurance review is so important: it helps ensure your coverage still lines up with your current priorities and responsibilities.
According to the 2024 Insurance Barometer Study by LIMRA and Life Happens, about half of American adults report having life insurance coverage, yet 42% — roughly 102 million adults — say they need life insurance or more of it. LIMRA+1
That “coverage gap” is a major reason to pause at year’s end and make sure your own plan hasn’t fallen behind.
🚨 When You Should Reassess Your Life Insurance Coverage
If any of these life changes happened in the past year, it’s a strong sign you may need to review your policy:
- Changes in marital status
Getting married or divorced can significantly impact your financial responsibilities and who depends on your income. - A growing family
Welcoming a new child or grandchild is often a cue to increase coverage so their future needs — like education and daily living expenses — are protected. - Career changes
A new job, promotion, retirement, or loss of employer-provided life insurance can change the amount of protection your family would need. - New financial obligations
Buying a home, starting a business, taking on student loans, or other large debts may require additional coverage so those obligations aren’t left behind. - Shifts in health or income
Major health changes or income increases/decreases can affect what type and amount of coverage makes sense. - Outdated beneficiaries or estate plans
If beneficiaries haven’t been updated after a marriage, divorce, birth, or death, it could lead to unintended consequences — or leave out someone important.
Ensuring your policy reflects your current life circumstances provides peace of mind and helps protect the people you love most.
📊 Why Many Americans Are Still Underinsured
Even among those who have life insurance, a significant number say they don’t have enough. Recent research shows:
- About half of Americans say they have life insurance, but 42% say they need coverage or more of it, representing about 102 million adults. LIMRA+1
- The number-one reason people give for not purchasing life insurance (or more of it) is that they believe it’s too expensive. LIMRA+1
- In reality, studies show around 72% of Americans overestimate the cost of basic term life insurance, often guessing it costs more than three times the actual price. LIMRA+1
The misconception about cost is huge — and it keeps many families from getting the coverage they actually need.
As an independent agency, Smart Insurance Agency, Inc. can compare multiple companies and help you see real-world pricing, not “gut instinct” guesses.
✔ Your End of Year Life Insurance Review Checklist
Use this simple checklist to guide your end of year life insurance review:
- List major life changes from the past year
Marriage, divorce, new child or grandchild, new home, job changes, retirement, or new debts. - Review your current policy details
Look at your death benefit, policy type (term vs. permanent), riders, premium, and policy end date. - Estimate your family’s future needs
Consider outstanding debts (like a mortgage), ongoing living expenses, college savings, and income replacement. - Update beneficiaries and contact information
Make sure your beneficiary designations and contact details are current and reflect your wishes. - Check your coverage against your budget
You may be surprised at how affordable the right amount of coverage can be — especially with term life.
🧭 Year-End, New Year, and Long-Term Protection
The end of the year is a natural checkpoint:
- You’re already thinking about goals, resolutions, and budgets.
- Open enrollment and benefits conversations are fresh on your mind.
- You may be gathering documents and statements for tax season.
Adding a quick life insurance coverage check-up to this list is a simple but meaningful way to support your long-term financial plan.
If you find gaps or questions, know that you don’t have to figure it out alone. Our team has been helping Missouri families protect what matters most for decades, and we’re always happy to talk through your options.
📞 Ready for an End of Year Life Insurance Review?
Before the year concludes, take one easy step: schedule a life insurance coverage review. It’s a short, supportive conversation that can make a big difference in your family’s financial security.
👉 Request your personalized review here:
Request Your Proposal Here
You can also explore our broader Personal & Family Insurance options if you’d like to review home, auto, umbrella, and more at the same time.
Start the new year knowing your life insurance coverage is aligned with your life today — not just the way it looked years ago.