5 Qualifying Life Events: Reasons to Update Life Insurance Coverage

Underwritten by United of Omaha Life Insurance Company

09.15.2026 | 7 min read

1. You're getting married

Qualifying life events that involve adding financial dependents, such as marriage, can impact the type of life insurance or amount of coverage that's right for your situation.

How marriage can affect your life insurance coverage

After getting married, you may consider removing your current life insurance beneficiary and replacing them with your new spouse. If your spouse is relying on your income, you might also need to increase your death benefit, so your husband or wife has more financial protection if you were to pass away.

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2. You're adding to your family

Adding kids to your family often leads to increased financial responsibilities, like childcare costs, higher grocery bills, and future school tuition. Your life insurance policy should provide enough coverage to pay for these expenses if you or your partner were to pass away unexpectedly.

Updating your policy after having children

The average cost of raising a child in the U.S. is $29,419 per year, but you could have higher or lower costs depending on your lifestyle, location, and other factors. ¹ Ensure that your current life insurance policy will cover your estimated expenses, and make changes, if needed. If you're adding a second child to your family, you may need to increase your death benefit, as your expenses will likely double.
Additionally, you might need to raise your life insurance coverage limit if your spouse is quitting their job to stay at home with the child. That way, your spouse can continue to make ends meet if you were to pass away.

3. You're buying a new home

Purchasing a home is a major financial investment, whether you're a first-home buyer or not. Your life insurance policy should provide enough coverage to allow your spouse or other heirs to pay off the loan without your income.

How homeownership can impact your life insurance needs

If you purchase a house with a mortgage, your life insurance policy should help cover the balance in case you pass away. The death benefit could help ease financial challenges your loved ones might experience in covering the debt after you're gone. If you have a term life policy, it could make sense to extend the term to match the length of your mortgage.

4. You're making a job change

Updating your life insurance coverage is often a smart move if you get a new job. Whether you're getting a pay raise or your life insurance options are changing, some people need to adjust their coverage limits or consider other types of life insurance.

Why reviewing your policy is beneficial if you get a new job

It’s important to make sure that your life insurance policy will continue to provide enough financial protection for your loved ones if your income changes. If your pay increases substantially, for example, you might want to adjust your coverage to avoid being underinsured.
Also, keep in mind that employer-sponsored life insurance usually ends when you leave a job. If you want to continue your life insurance coverage, you’ll need to purchase an individual life insurance policy or enroll in your new employer’s plan. While employer-sponsored life insurance is often cheaper, it may have lower coverage limits than what your family needs.²

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5. You're getting divorced

Divorce often means removing a financial dependent from your family. As a result, you might not need as much life insurance coverage as you did when you were married.

Adjusting your coverage after divorce or separation

If you're getting divorced or separated, it's a good idea to review your life insurance policy. You may want to remove your ex-spouse and replace them with a different beneficiary, such as a child or another family member. You might also decide to reduce your death benefit if your ex-spouse will no longer be dependent on your income. Decreasing your death benefit can also lower your life insurance premium.

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Ensure your life insurance policy reflects your current life situation

Everyone has different life insurance needs. As you experience major life events, it's common for your life insurance needs to change. You might have to increase or decrease your coverage

limits, or choose a different type of life insurance, to ensure that your loved ones are adequately protected based on your season of life.

The importance of regularly updating your life insurance coverage

Most individuals and families will find that their life insurance needs change as time goes on. For example, if you purchased life insurance as a single person, and you get married or have children, it’s likely that you’ll need to adjust your coverage. If you buy a house or change jobs, reevaluating your current policy can help determine if your policy is still providing the protection you need.

There is no one-size-fits-all answer to when it's a good idea to update your insurance policy. But reviewing your coverage when you experience a major milestone or life change is always a good idea. United of Omaha Life Insurance Company, a Mutual of Omaha company, offers a wide variety of life insurance options that can help you determine if your policy meets your current needs.

Frequently Asked Questions

What is a qualifying life event for updating life insurance?

A qualifying life event for life insurance can be any significant change to your financial situation or your family’s financial needs, such as buying a home, having a baby, or changing jobs. You might also need to adjust your policy if you add new dependents who rely on your income, like aging parents.

How often should I update my life insurance policy?

Everyone’s situation is different, so there’s no specific guideline for how often you should update your life insurance policy. In general, it’s recommended to review your life insurance coverage after major life events, or anytime your financial situation changes, or your family’s financial needs change.

Can I update my life insurance policy after a major life event?

Yes, you can update your existing life insurance policy after certain major life events. Most insurers allow you to decrease your death benefit or change your beneficiary at any time. If you have a convertible term life policy, you can convert your policy into permanent coverage without taking a medical exam.3 However, some policy changes, like increasing your death benefit, often require underwriting, which can have additional requirements, like a medical exam.

How do I know if I need to update my life insurance coverage?

Updating your life insurance coverage makes sense when your current policy no longer meets your family’s financial needs. For instance, if you recently bought a house with a mortgage, you may need to increase your death benefit so it would help cover the new debt if you passed away. In general, experiencing any major life event is a good time to review your policy and decide if you need to make adjustments.