10 scenarios where you reevaluate your life insurance needsIf you believe that purchasing life insurance is a one-time transaction, think again.Life changes as you get older. You get a job, get promoted, get married, buy a house, have kids, and then they leave home. Each of these life changes is when you should be thinking about life insurance, and if you bought it at any of these stages, you should also consider reviewing your life insurance. Here they are:
Seven Scenarios Where You Review Your Life insurance Needs
When Your Policy Nears its ExpirationIf your current life insurance policy is about to expire, you probably have a few decisions to make about what to do next, including whether:To renew it, To purchase a new policy,To forgo life insurance altogether.The stage of your life should be considered when weighing your options if you find yourself at a crossroads. This will include your financial situation, whether you have children, etc. Before deciding what to do with an existing policy that is about to expire, keep reading the list to see additional scenarios to think about.When you get marriedWhen a significant other enters the picture and you start to share your finances with them, it’s a good idea to review your life insurance, so that they are protected in the event of your passing and vice versa.When You Have ChildrenEvery time you bring a new child into your family, your household’s financial dynamics change, and children require special financial consideration. To provide a strong layer of financial protection for your loved ones, you should consider increasing your life insurance coverage to include daily necessities such as feeding, daycare costs, schooling, and future educational fees.Upon divorceA change in marital status will impact your need for life insurance. When that occurs, it’s crucial to review your life insurance policy. Change any existing policies’ beneficiaries as necessary to reflect your new situation.When You Get a New Job or Income IncreaseA new job usually comes with a raise in pay. Some people decide to increase their spending, while others evaluate their financial situation. This is where evaluating your life insurance policy comes in. Is your current policy adequate to cover your new way of life? If not, it’s time to beef up your coverage.You must determine whether your current policy covers your new lifestyle. If it doesn’t, you know it’s time to expand your coverage.As Retirement Draws CloseOne of the most significant life changes you will experience is approaching retirement. To support your plans for the legacy you want to leave behind, life insurance can be crucial even when you’re retired.It’s important to consider how your policy can be used as a source of income in retirement to help support your standard of living as you prepare for retirement.If You have Outstanding DebtLife insurance is about providing for our families financial needs after we are gone. You wouldn’t want your family to be burdened with your financial obligations if something bad happened to you. Rather, you’d want to give them options so that they can continue with their financial lives with ease.When used wisely, a life insurance policy can provide your family with the means to meet any financial obligations you may leave behind. If you plan to use life insurance in this way, knowing how much debt you have and when payments are due is a crucial step in figuring out how much life insurance coverage.
If you are entering these life milestones and you already have an existing policy, you should consider reviewing your life insurance policy.
Not sure what you need? Learn in seconds which types of insurance suits your needs.