How often should Nevada businesses review their life insurance coverage?

Business life insurance should be reviewed at least annually and immediately upon any significant business or ownership change. Business circumstances evolve rapidly — coverage that was appropriate two years ago may be misaligned with current business value, ownership structure, or key personnel.

Triggers for immediate review: significant change in business valuation (growth or decline); ownership changes such as a new partner joining, a partner departing, or ownership percentages changing; addition or departure of key employees covered by key person policies; new business loans that require life insurance as a condition; change in a key insured person's health status; business acquisition or merger.

Annual review components: verify that buy-sell coverage amounts still reflect current business valuation; confirm key person coverage amounts still reflect the financial impact of each covered person's departure; review premium payment status — confirm all policies are in force and no lapses have occurred; review beneficiary designations and collateral assignments for currency.

For businesses with permanent life insurance policies (executive bonus, split dollar): review cash value performance annually; confirm the policy is on track to meet its intended accumulation goals; assess whether any policy modifications are needed.

Nevada businesses can schedule annual reviews with an agent in our network at no obligation. These reviews ensure coverage remains aligned with business realities and identify any gaps that need addressing.