Policy change is any alteration to an existing life insurance contract key features, such as face amount, death benefit option, premium structure, riders, ownership, beneficiaries or policy type, made after the policy has gone in force. Common policy changes include increasing or decreasing coverage, switching between level and increasing death benefit options, adding or removing riders, changing premium modes, updating ownership to a trust or business, or exercising conversion privileges on term insurance. Each type of policy change is governed by carrier rules, policy language and state regulations, and may require evidence of insurability, new illustrations, signed forms or policy amendments. Some changes can have tax implications, affect guarantees or restart contestability periods, so careful analysis is important before implementation.

In everyday servicing, advisors and policy service departments handle policy change requests as client circumstances evolve. Marriage, divorce, business succession, estate planning updates, retirement and changes in affordability often trigger review of whether existing coverage still fits. The advisor helps the client identify desired outcomes, then coordinates with the carrier to determine what changes are allowed and what underwriting, if any, is required. For example, reducing face amount may be straightforward, while increasing coverage often requires new evidence of insurability. Ownership shifts to trusts or entities may require legal documentation and tax advice. Advisors typically review updated illustrations to show how the change will affect premiums, cash values and death benefits. Documenting policy changes through proper forms, endorsements and communications helps prevent future disputes and ensures the contract continues to match the client's objectives and broader financial plan.