Question 1

How do I know if my life insurance coverage is outdated?

Accepted Answer

Compare your current coverage amount against 10-15x your current annual income (if you have dependents and a mortgage). If you haven't recalculated since a raise, promotion, or new job, there's a good chance the ratio has drifted — coverage amounts rarely get updated automatically.

Question 2

Should I increase my existing policy or buy a second one?

Accepted Answer

It depends on your existing policy's terms. Some allow increasing coverage without full re-underwriting; if not, a second supplemental term policy sized to the gap is usually simpler than replacing the original, especially if your health has changed since you bought it.

Question 3

Is my employer's disability coverage enough at a higher salary?

Accepted Answer

Check whether it updates automatically with your salary or is fixed at a flat dollar amount or an outdated percentage. Many group disability plans cap the monthly benefit regardless of how much your income has grown, creating a wider gap the more your salary increases.

Question 4

How often should I review my life insurance coverage?

Accepted Answer

Annually at minimum, and immediately after any major change: a raise of 15%+ , a new job, marriage, a child, or a new mortgage. Turning 35 is simply a natural prompt if you haven't reviewed it in a while.

Question 5

What should I do with old 401(k)s from previous jobs?

Accepted Answer

You can typically roll them into your current employer's 401(k) or into an IRA. Consolidating makes it far easier to track your total retirement balance, rebalance your investments, and keep beneficiary designations consistent and current.

Question 6

Does a higher income change whether I should use a traditional or Roth 401(k)?

Accepted Answer

Often, yes. As your income and tax bracket rise, the relative benefit of pre-tax traditional contributions (which reduce taxable income now) typically increases compared to Roth contributions. There's no universal answer — it depends on your current bracket versus your expected bracket in retirement.

Turning 35 Financial Planning

Why This Matters

Your 5-Step Plan

Recalculate Your Coverage-to-Income Ratio

Guidance

Action Checklist

Calculate Now

Check Whether You've Outgrown Your Group Life Plan

Reassess Disability/Income Protection at Your New Income

Revisit Your Tax Bracket and Withholding

Update Beneficiaries Across Every Account

Frequently Asked Questions

Your Checklist