Why Life Insurance Should Be Reviewed Annually—Just Like Your Taxes

Just as you set aside time each year to file your taxes, it’s equally important to review your life insurance policy annually. At Avalon Tax & Financial Services, we believe life insurance isn’t a “set it and forget it” decision—it’s a crucial part of your financial strategy that should evolve with you. Here’s why a yearly check-in matters.

Life Changes Demand Policy Adjustments

Life can change drastically in just twelve months. You may have gotten married, had a child, purchased a new home, started a business, or changed jobs. These milestones often shift your financial responsibilities—and your life insurance coverage should reflect that. Reviewing your policy each year ensures your loved ones are adequately protected and that your benefits are still aligned with your current situation.

Financial Goals Evolve Over Time

Life insurance is more than just a death benefit. If you own a permanent life insurance policy—like whole or universal life—it likely builds cash value over time. That cash value can be a flexible tool, whether you need emergency funds, want to supplement your retirement income, or are planning your child’s college tuition. An annual review allows Avalon’s financial professionals to help you evaluate policy performance, explore options for loans or withdrawals, and adjust your coverage based on updated financial goals.

Policy Terms and Rates Can Change

Insurance markets shift, and new life insurance products become available regularly. What may have been the best plan five years ago might now be outpaced by a more efficient or affordable option. During your annual policy review, Avalon can compare your current policy to newer offerings, reassess your premium costs, and identify opportunities to enhance your coverage or reduce costs—without compromising protection.

Keep Beneficiary Information Accurate

It’s easy to forget that life insurance policies rely on accurate beneficiary information. Failing to update this can lead to legal complications or delays in benefit distribution. Reviewing your policy annually is a simple way to ensure your beneficiaries are up to date—reflecting changes in your personal life such as marriage, divorce, or new additions to your family.

Integrating Insurance Into Your Bigger Financial Picture

As a firm that provides both tax and financial services, Avalon is uniquely equipped to show you how life insurance fits into your overall plan. Your policy impacts not only your estate but also your retirement planning and potential tax liabilities. By reviewing it alongside your tax strategy, we ensure everything works together to protect and grow your financial future.

Let Avalon Help You Stay Prepared

Life insurance isn’t just a once-in-a-lifetime purchase—it’s a key component of a well-rounded financial plan. With an annual review, you can be confident that your policy continues to serve its purpose: protecting your family, supporting your goals, and keeping your finances secure. Contact Avalon Tax & Financial Services today at (951) 801-2805 or visit avalonfinancialservice.com to schedule your life insurance review and experience the peace of mind that comes from staying one step ahead.