There is a satisfying feeling that comes with buying a life insurance policy. You sign the paperwork, pay the premium, and mentally check a massive box on your adulting to-do list: Family protected. Done.  For most people, that policy then goes into a filing cabinet or a digital folder, never to be looked at again until… well, until it is needed.  But life does not stand still. Since you signed that policy, your life has likely changed in a dozen different ways—new jobs, new homes, marriage, divorce, or new children. If your life insurance hasn't evolved along with your life, the safety net you think you have might be full of holes.  This January, as you review your finances for the year ahead, avoid the "set it and forget it" trap. Here is why an annual life insurance audit is critical to your financial health. 

1. The Beneficiary Blunder

Who is listed on your policy? It sounds like a simple question, but it is the source of frequent legal nightmares.  Life insurance policies are contracts, and in many states, the name on the policy overrides what is written in a will. If you bought a policy ten years ago and listed your then-spouse, but have since divorced and remarried, your ex-spouse may still be the legal beneficiary of that payout—regardless of your current wishes.  The Audit Fix: A simple check ensures your death benefit goes exactly where you intend it to, protecting your current partner and children. 

2. The Inflation Gap

Ten years ago, a $500,000 policy might have felt like a fortune. It might have been enough to pay off your starter home and cover five years of your salary.  But consider your life today. Has your income doubled? Has your mortgage grown? With inflation and lifestyle changes, that same $500,000 today might only cover two years of expenses. If your coverage is based on the "Old You," the "Current You" is drastically underinsured.  The Audit Fix: We recalculate your income replacement needs based on 2026 dollars and your current standard of living to ensure your family isn't left short. 

3. The "Conversion" Clock is Ticking

If you hold a Term Life policy (coverage that lasts for 10, 20, or 30 years), you likely have a hidden asset called a "conversion privilege." This allows you to trade your temporary term policy for a permanent policy without taking a new medical exam.  This is a lifeline if your health has declined since you bought the policy. However, this privilege often has an expiration date (usually age 65 or 70, or a specific number of years into the policy). If you miss that deadline, you lose the option forever.  The Audit Fix: We review your policy’s fine print to identify critical deadlines so you don't accidentally forfeit valuable options. 

4. You Might Be Overpaying

Medical science improves every year. Conditions that made insurance expensive a decade ago—like certain heart conditions, sleep apnea, or past cancer history—are viewed differently by underwriters today.  If you have quit smoking, lost weight, or if treatment protocols for your condition have improved, you might be eligible for a much better rate than you are currently paying. 

Start the Year with Certainty 

You wouldn't drive a car for ten years without an oil change, and you shouldn't rely on a ten-year-old financial strategy to protect your family today.  Schedule a 15-minute Policy Audit with Pinney Insurance. We can review your existing coverage (even if you didn't buy it from us) to make sure your beneficiaries are correct, your coverage is adequate, and you aren't overpaying.  Contact us today to secure your foundation for 2026.