Consider the income your household would lose, debts that would remain, costs for children or other dependents, and resources already available. The goal is to identify a coverage amount that serves a specific purpose and has a premium you can sustain. [1]

You may still want coverage if a spouse, partner, parent, or another person depends on your income, or if someone would be responsible for shared debts or final expenses. If no one relies on your income, your need may be different. Review what a death would mean financially for the people close to you.

Emergency savings can help with a temporary disruption. Disability insurance is designed to replace a portion of income when a covered illness or injury keeps you from working under the policy’s terms. Compare the length of time your savings could support your household with the waiting period and potential duration of disability benefits. [2]

Term insurance provides coverage for a specified period and generally pays a death benefit if the insured dies while the policy is in force. Permanent policies, including whole and universal life, are designed for longer-term coverage and may build cash value. Their costs, guarantees, and flexibility vary by policy. [3]

Think about how long the financial need is likely to last. For example, coverage might be intended to support a family while children are dependent or to help with a mortgage during working years. Review the premium and what options, if any, the policy offers when the initial term ends. [3]

Review the current policy’s death benefit, premium, cash value, guarantees, and any surrender charges before making a change. A new policy may involve different costs or underwriting. Confirm that replacement coverage has been approved and is in force before ending coverage you still need. [1][3]

Compare the monthly benefit, how the policy defines disability, the waiting period before benefits begin, how long benefits can last, and whether partial disability is covered. Two policies with similar benefit amounts may provide different protection because their definitions and limitations differ. [2]

An own-occupation definition focuses on your ability to perform the duties of your occupation. An any-occupation definition may require that you be unable to work in other employment as defined by the policy. Read the specific contract language, including whether the definition changes after benefits have been paid for a period of time. [2]

Employer coverage is a useful starting point, but review its benefit amount, waiting period, benefit duration, and what happens if you leave the job. Also check whether benefits would be taxable: the treatment can depend on whether premiums were paid by you with after-tax dollars, by your employer, or through pre-tax payroll deductions. [2][4]

Do not assume they will. Social Security Disability Insurance has its own work and medical eligibility rules, and an application must be approved before benefits are paid. Include any potential Social Security benefit as one part of your review, rather than treating it as a substitute for understanding your savings and insurance coverage. [5]

Review them after changes such as marriage, divorce, the birth of a child, or the death of someone you named. Check the beneficiaries recorded with the insurer, including backup beneficiaries, so the designation reflects your current wishes. [6]

Revisit coverage when your income, debts, dependents, employment benefits, or financial goals change. A review can confirm whether the policy still addresses the need for which you bought it and whether you understand its current cost and terms.