Fall Financial Review: Why You Should Reassess Your Life Insurance and Annuity Policies
Updated: Oct 7
Fall has a way of bringing us back to routine. The kids are back in school, summer travel slows down, and before the holidays arrive, many begin thinking about year-end finances.
It's also a useful time to pull out something you may not have looked at in years: your life insurance policies and annuity contracts. The policy you bought 10 or 20 years ago may still fit your life perfectly. Or your life may have changed while the policy stayed the same. That's why a periodic review matters.
Your Life Changes. Your Insurance Needs Can, Too.
Marriage, divorce, children, grandchildren, retirement, a new business, a paid-off mortgage, or a growing estate. Any of these can change the role insurance plays in your financial life. Many Americans may already have a coverage gap.
According to LIMRA's 2025 Insurance Barometer Study, 51% of U.S. adults ages 18–75 reported owning life insurance, while 40% said they needed life insurance or needed more coverage, representing approximately 100 million Americans.
A review isn't necessarily about buying something new. It's about understanding what you already have.
6 Things to Review This Fall
1. Your Beneficiaries
Check both primary and contingent beneficiaries. Marriage, divorce, births, deaths, and changes to an estate plan can leave beneficiary designations out of sync with your current wishes.
2. Your Current Coverage
Ask why you originally purchased the policy. Was it intended to replace income, pay a mortgage, or provide for young children? Are those needs still there? Or has the purpose shifted toward estate planning, wealth transfer, business planning, or providing for the next generation?
3. What You're Paying
Review premiums and other policy costs. For annuities, this may include surrender charges, administrative expenses, investment expenses, and costs associated with optional riders. Higher costs don't automatically mean a contract is inappropriate. A feature you're paying for may still be valuable. The important thing is knowing what you're paying for.
4. Your Existing Benefits and Guarantees
This is especially important with older policies. Newer does not automatically mean better. Older life insurance and annuity contracts may contain guarantees, riders, income benefits, death benefits, or other provisions that could be difficult or costly to replace. Before considering a change, understand what you would be giving up.
5. Cash Value, Surrender Value, and Policy Loans
If you own permanent life insurance, review the policy's cash value, surrender value, premium requirements, and any outstanding loans. Loans and withdrawals can affect policy values, death benefits, and potentially taxes. For annuities, review the current contract value, cost basis, surrender value, surrender period, income benefits, and rider costs.
6. Your Estate Plan
Insurance doesn't exist in isolation. Review who owns the policy, who is insured, and who receives the death benefit. If you've created or updated a trust or estate plan since purchasing the policy, ensure your insurance and beneficiary designations still coordinate with those plans.
Have an Older Annuity? Be Careful Before Replacing It.
An annuity purchased 10 or 20 years ago deserves a thoughtful review. Some older contracts may contain valuable income guarantees, death benefits, or other contractual provisions. Replacing an annuity could also mean paying surrender charges, starting a new surrender period, or giving up existing benefits.
A 1035 exchange may allow certain qualifying insurance or annuity contracts to be exchanged without recognizing gain at the time of the exchange, but favorable tax treatment alone doesn't mean an exchange makes financial sense. The better question is: What would I gain—and what would I give up?
Your Fall Insurance Checklist
This fall, gather your life insurance policies, annuity contracts, and most recent statements. Then review:
Beneficiaries and ownership
Death benefits and current coverage
Premiums and policy costs
Cash and surrender values
Outstanding loans
Annuity surrender periods
Riders, guarantees, and income benefits
Tax basis
Current insurance and retirement needs
Coordination with your estate plan
Most importantly, don't cancel an existing policy before understanding exactly what you own and what replacing it could mean.
Have an Old Policy Sitting in a Drawer? Send It to Us.
This fall, we're encouraging our clients to find their older life insurance policies and annuity contracts and send them to the team at Sun Group Wealth Partners for review using the secure document-delivery method our team recommends.
Maybe you haven't looked at the policy in years. Maybe the premium has changed. Maybe you're not sure what some of the benefits mean. Maybe your family, retirement, or estate plan looks completely different today. Or maybe you're wondering whether there could be a more cost-efficient or appropriate way to address your current needs.
We'll help you look at what you have in the context of your broader financial picture and identify questions or considerations worth discussing with your insurance, tax, and estate-planning professionals. Sometimes a review may uncover something that deserves attention. And sometimes the answer may simply be: Keep what you have. That's useful information, too.
Before the year gets busy, take a look at the policies you've been carrying for years. Your life may have changed. It's worth understanding whether your insurance still fits the life you're living today.
Sources
LIMRA & Life Happens, 2025 Insurance Barometer Study: Life insurance ownership and coverage-gap research.
National Association of Insurance Commissioners (NAIC): Life insurance consumer guidance, including policy reviews, beneficiaries, and replacement considerations.
FINRA: Consumer guidance on life insurance and variable annuity exchanges, surrender charges, fees, and replacement considerations.
Internal Revenue Service: Section 1035 rules and guidance concerning qualifying exchanges of life insurance and annuity contracts.
This material is provided for general educational and informational purposes and is not intended as individualized investment, insurance, tax, or legal advice. Insurance and annuity products contain costs, limitations, exclusions, and contractual terms that should be reviewed carefully. Guarantees are based on the claims-paying ability of the issuing insurance company. Replacing or exchanging an existing insurance or annuity contract may result in surrender charges, new surrender periods, loss of existing benefits, higher costs, or tax consequences. Consider consulting appropriate financial, insurance, tax, and legal professionals before making changes to an existing contract.
Winnie Sun is a registered representative with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Sun Group Wealth Partners, a Registered Investment Advisor and separate entity from LPL Financial.
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