When was the last time you reviewed your life insurance coverage? Perhaps you haven’t looked at it since you bought the policy. As a general rule of thumb, it’s good to review annually as well as when big life events occur. When you sit down to review your retirement and savings accounts, emergency fund, and even your family budget, your life insurance policy should be included.
Failing to examine your insurance over time could mean your family simply won’t have enough money to pay the mortgage and meet the bills if you pass away. The following are a few life events that signal it’s time to review life insurance.
You’re buying a house or moving.
When you buy your first home or move into a more expensive property, you and the person you bought it with are liable for more debt. Insurance should reflect that. If you haven’t already, take out a life insurance policy when buying a property or review your coverage when you are in the process of purchasing a larger house. With more debt to your name, you want to be sure that your life insurance adequately provides for your loved ones when you are gone.
Your family is growing.
If your family is growing because you had or adopted children, then it is likely that you will need to make some adjustments to your life insurance policy by increasing your coverage limit. Keep in mind that if you pass away unexpectedly, your paycheck will stop supporting your family’s finances.
Your marital status has changed.
If you got married, you should talk to your agent about the fact that you and your new spouse may now depend on each other’s income. If you have recently divorced, then you may find that your coverage or policy beneficiaries need to be corrected.
Your income has changed.
Whether you changed careers or got promoted in your job, you should go back to your insurance policy and update the coverage. If your income has increased or decreased, make sure that the policy reflects this change, as your family will rely on it for income replacement.
You are retiring.
Ask yourself whether any of your loved ones will face financial hardship if you die. If the answer is no, then you may not need life insurance and may be able to consider canceling it. However, if you have a spouse, partner, or loved ones that rely on your income, you could still benefit from securing a life policy.
Life insurance doesn’t have to be difficult. At Action Insurance Group, we work with you to find the right coverage for your needs – whatever your budget. Our life insurance experts are ready to get started. Contact us today for more information.
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