By Karen Caffarini, Life Quotes, Inc.

Life changes constantly.

In the course of a year, people could get a job promotion, buy a new car or house or welcome a child. They could tie the knot or finalize a divorce, win the lottery or send a child off to college.

Each scenario could change a person’s financial needs and family obligations, which is why term life insurance experts say it’s important to conduct an annual check of all your insurance policies.

Here are 5 items to check-off your life insurance list as you enter 2012.

#1: Did your responsibilities change? Michael Barry, spokesperson for Insurance Information Institute, says you may want more life insurance if you add another child to the family, get married or if high college tuition bills are in your child’s future. Also, sometimes it is better to get additional term life insurance to supplement the group life insurance policy you may have at work.  If your kids are now living on their own you will want to review—not cancel—your life insurance to ensure you have enough for estate planning purposes, advises Debra Newman, chairperson for the LIFE Foundation.

#2: Did your beneficiaries change? “I can’t tell you how many times a person has gotten divorced but the old wife is still the beneficiary when they die,” Newman says.  She suggests sparing your family a lot of headaches in probate court by checking the current status of your life insurance policies, annuities, 401 (k) plans, investments and other accounts.

#3: Did your bills increase? “Did you buy a new house, take out a home improvement loan, and put more on your charge cards this year? Debt doesn’t go away and your family will need more money to pay it off,” Newman says. Taking on additional debt is another reason to increase your life insurance coverage since there is now more debt for your beneficiaries to cover if something happens to you.

#4: Check your policy’s age. The cost of life insurance policies has dropped in the last several years, due to increases in life expectancy and medical advancements. Newman says many people with older policies, especially those more than 15 years, are finding they can get better coverage at a lower cost than with their original policy.

#5: Are you healthier? If you’ve kicked the habit, maintained a healthier lifestyle or have been cancer-free for five years, you might qualify for life insurance at a better rate, insurance experts advise. If you suffer from a chronic medical condition such as diabetes and high blood pressure and the condition under control, it might be a good idea to get documentation from your physician and any documentation you’ve been given after taking a new physical examination and show it to the insurance company. This will encourage your insurer to revisit your life insurance premiums to reflect those positive changes.

This article was originally published by Life Quotes, Inc.