We have already told you many reasons as to why you should have life insurance, but what if you already have life insurance? You may be wondering at what point in time, if any, that you need to review your policy to make sure you always have the best coverage. There are life-changing events, planned and unplanned, that will alter the life insurance coverage you need. Here is a list of 5 events that commonly act as catalysts to re-evaluate your life insurance:
1. Getting Married or Divorced
When you get married, you and your partner should evaluate each of your life insurance policies. It is important to do this because, in the case of the unexpected, both of you want to make sure that each of you will be taken care of. Inversely, your life insurance policy should be reviewed and possibly modified in the case of a divorce.
2. Having a Child
Whether it is your first child or your fourth, you need update your life insurance to include your child as a beneficiary. You might also want to consider the coverage you want for your child. Raising children is extremely costly and making sure they are taken care of is your primary responsibility.
3. Buying a Home
When purchasing a home, it is important to note the terms and conditions of your mortgage. You can change your life insurance policy so that it covers the remainder of your mortgage cost.
4. Change in Employment Status
You should review your life insurance coverage if you have had any recent changes in your employment status like a change from fulltime to part-time, a raise, start of a new job, etc. All of these changes can affect your income level. Do not leave your financial responsibilities as an afterthought, and make sure you have adequate coverage.
5. Taking out a New Loan
Taking out a loan is another way of acquiring debt. It is important to ensure that you have a life insurance policy that will cover the costs of that debt. You do not want this debt passed on to your spouse or loved ones.
If you have not experienced any of the aforementioned events, try to think of the last time you met with your life insurance agent. If it has been over a year ago, we suggest that you touch base with your agent to make certain your coverage is still appropriate. There are also many other events that can affect the life insurance coverage you need. We at SelectQuote hope you take the initiative to review yours as soon as you have a chance.