3 Key Life Insurance Factors to Review Before Open Enrollment

Keywords: life insurance, open enrollment, life insurance coverage, beneficiaries, premiums

As open enrollment approaches, it’s a great time to review your life insurance policy. Whether you’re purchasing a new policy or reviewing an existing one, making sure you have the right coverage is essential to protecting your loved ones.

#### Factor 1: Ensure Your Coverage Is Sufficient

The first thing to evaluate is whether you have enough coverage. A good rule of thumb is to have life insurance coverage equal to 10-12 times your annual income. This ensures that your family will have enough financial support in case the unthinkable happens.

Real-life example:

Susan, a 55-year-old mother of two, recently reviewed her life insurance coverage during open enrollment. She realized her policy, which she had purchased over 10 years ago, only covered $150,000—far below the recommended amount. After speaking with an advisor, she increased her coverage to $500,000 to better protect her family.

#### Factor 2: Update Your Beneficiaries

Life changes—like marriage, divorce, or having children—can impact who you want to designate as a beneficiary. Open enrollment is the perfect time to update these details to ensure your benefits go to the right people.

Case Study:

Mark, a 47-year-old business owner, realized he still had his ex-wife listed as the beneficiary on his life insurance policy. During last year’s open enrollment, he updated his beneficiary to his children, ensuring they would be financially secure in the event of his passing.

#### Factor 3: Review Your Premiums and Policy Type

Do you have term or whole life insurance? Term life policies are typically less expensive but only cover a specific period. Whole life policies, while more expensive, provide lifetime coverage. Open enrollment is a great time to re-evaluate your needs and decide whether you should increase, decrease, or change your policy.

Actionable Takeaway

- Review your coverage amount to ensure it meets your needs.

- Update your beneficiaries during open enrollment if necessary.

- Consider your premium and policy type to ensure you're getting the best value for your money.