Why Annual Reviews of Life Insurance and Annuities Are Crucial—and Why You Need a Trusted Advisor
- Philippe Deray
- Nov 13
- 4 min read
Updated: Nov 16
Financial planning is not a one-and-done task. Just as your life changes, your financial strategies need to evolve with you. Two key components of any long-term financial plan—life insurance and annuities—require ongoing attention. While it might be tempting to set these up and forget them, there’s immense value in scheduling annual reviews. Doing so ensures your coverage and retirement strategies remain aligned with your goals and life circumstances. Equally important is working with a trusted advisor or agent who understands your unique situation, rather than constantly switching to someone new who starts from scratch every time.
Life Insurance: More Than Just a Safety Net
Life insurance is often viewed as a simple safety net for your loved ones, providing financial security in the event of your death. But life insurance is not static—it’s a dynamic financial tool that should adapt as your life evolves. Marital status, the birth of children, career changes, significant purchases, health shifts, and even changes in tax law can all impact your life insurance needs.
Without regular review, your policy may become inadequate or unnecessarily expensive. For example, a term policy purchased a decade ago may no longer provide sufficient coverage if your family has grown or your financial responsibilities have increased. Conversely, some policies may offer opportunities to reduce premiums or convert to permanent coverage that you could take advantage of—but only if you review them periodically.
Annual reviews allow you to:
Reassess coverage amounts to ensure your family or beneficiaries are properly protected.
Update beneficiary designations in response to life events such as marriage, divorce, or the birth of a child.
Evaluate policy features like riders, accelerated benefits, or conversion options.
Identify cost-saving opportunities, such as adjusting coverage or leveraging accumulated cash value.
By keeping your life insurance aligned with your current situation, you prevent the risk of underinsurance and make sure your investment in protection continues to serve its intended purpose.
Annuities: Ensuring Your Retirement Strategy Stays on Track
Annuities, designed to provide guaranteed income during retirement, can also benefit significantly from annual review. Markets fluctuate, interest rates change, and your personal retirement goals may evolve. What seemed like an ideal annuity structure five years ago might no longer align with your income needs or risk tolerance today.
During an annual review, your advisor can help you:
Evaluate performance relative to your retirement goals and other investments.
Assess fees and expenses, which can erode long-term returns if overlooked.
Rebalance allocations within variable annuities to match your risk tolerance and market outlook.
Consider riders or enhancements that may have become more valuable due to changes in your health or financial situation.
Without these reviews, you risk having an annuity that either underperforms or fails to meet your evolving retirement objectives. Regular check-ins allow you to adjust strategies proactively rather than reacting to unexpected shortfalls in income.
The Value of a Trusted Advisor
One of the most overlooked aspects of maintaining life insurance and annuities is the relationship with your agent or financial advisor. Many people assume that any licensed agent can handle their annual review, but continuity matters. When you work with the same advisor year after year, several advantages emerge:
Deep Understanding of Your Situation
A consistent advisor knows your history, goals, and preferences. They understand why you selected certain policies or annuities, which allows them to make informed recommendations during reviews. This depth of knowledge cannot be replicated by a new agent starting from scratch.
Customized Guidance
Because your advisor understands your unique financial picture, they can tailor advice to fit your evolving needs. Whether it’s adjusting coverage, leveraging new products, or maximizing income strategies, the guidance is specific to you—not generic.
Efficiency and Convenience
An annual review with a familiar advisor is faster and more effective. They already have your documents, understand your priorities, and can spot issues quickly. Switching agents often means repeating paperwork, re-explaining your situation, and potentially overlooking nuances from prior years.
Trust and Peace of Mind
Financial matters are deeply personal, and trust is essential. Knowing you have an advisor who consistently monitors your financial protection and retirement strategy gives peace of mind. It ensures that you have someone advocating for your best interests, not just selling products.
Annual Reviews: A Simple Habit with Big Benefits
Scheduling a dedicated annual review doesn’t have to be complicated. A typical session can cover:
Updating personal information and beneficiaries
Reviewing life insurance coverage, policies, and riders
Assessing annuity performance, riders, and fees
Adjusting strategies based on changes in income, health, or goals
The review process creates a structured opportunity to ask questions, clarify your understanding, and make adjustments before small issues become big problems. Think of it like a yearly checkup for your financial health. Just as you wouldn’t skip an annual physical, you shouldn’t skip a review of the financial instruments that protect your future and your loved ones.
Final Thoughts
Life is unpredictable, and financial strategies that were perfect at one point may become outdated without notice. Annual reviews of life insurance and annuities are essential to maintaining security, maximizing benefits, and aligning your financial plan with your current and future goals. Equally critical is having a trusted advisor or agent who knows your story and can guide you through each review with personalized, informed advice.
By committing to these yearly check-ins, you protect yourself and your loved ones from unnecessary risk, capitalize on opportunities to improve coverage or income, and ensure that your financial strategy keeps pace with your life. In the world of financial planning, consistency and foresight are far more valuable than reactive decision-making—and the key to both is the relationship you build with your advisor.
Life Insurance Disclaimer
Disclaimer: This article is for informational purposes only and is not legal, financial, or insurance advice. Life insurance needs and products vary by individual, state, and insurer. Policies may involve fees, costs, and limitations. Some policies include a cash value component that can grow over time, and certain strategies may allow for accumulation beyond basic protection. Results are not guaranteed and may vary by policy, insurer, and state. Consult a licensed insurance professional before making any life insurance decisions.
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