At Year End – Re-evaluate Your Life Insurance Plan

4thofjulyAs we welcome in the New Year, we resolve to make changes to lose bad habits and replace them with better goals and lifestyle choices.  Ushering in the New Year is also a good opportunity to look back at the milestones you achieved in 2012.  If you already have life insurance, a number of life’s milestones can affect the amount of coverage you need.  Re-evaluating your life insurance policy will ensure you enter into the new year with the peace of mind in knowing your loved ones are protected.Starting a family or adding another member to the family with a new birth will usually mean needing to increase your coverage to protect all your beneficiaries.  If you are a newlywed, and your spouse relies on a portion or all of your income to pay household bills, you will want to invest in coverage to replace these funds.  As your family grows with children, you will want to ensure that each child is covered through college to help them achieve financial independence.  A term life insurance policy allows you to choose the specific period of time that you think your beneficiaries will need your continued support.

Making large investments, such as buying a home, and your amassed debt will be deciding factors when choosing the amount of coverage you would need.  If you just bought a new home, you would want to make sure the mortgage would be covered so your spouse would not lose the house in the event of your passing.  You can also ensure your personal debts will not become a burden on your spouse by investing in enough coverage to pay them off.

Maybe you earned a promotion or a higher paying job or just started retirement this past year?  Your family’s new lifestyle on an increase income will be reflected in your monthly expenditures.  You will want to re-evaluate your life insurance policy based on the new income level that your family relies on.  If you saved a nest egg to retire with, then you might not need as much life insurance as you previously did.  However, if you think your nest egg would not be enough to support your spouse in case anything happened to you, then you would want to consider having a policy that would support him or her in their later years.

Like any major purchase, you should compare your options when purchasing life insurance. Different policies will have different pros and cons, and will be influenced by different risk factors. By using an independent term life insurance agency, like SelectQuote, you can compare different life insurance companies and policies to find the best policy to fit your budget and lifestyle.

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