When it comes to our own money, we always want to make sure that we get the most for our investments This is true whether it is on smaller purchases — like buying groceries — or perhaps a more significant purchase, such as buying a term life insurance policy. Like some longer term investments that you may hold, your term life insurance policy should be reviewed at regular intervals to insure that you are getting the best coverage for your money and for your own personal lifestyle.
As is often the case, when people first purchase term life insurance, they may think that their policy will fit their needs over the longer term. But the fact is that we will see many dramatic changes throughout our lifetime and it is most prudent to review your coverage at least every five years.
As you reach those major milestones, check your policy. Is your policy (coverage) enough for the all of the new aspects of your life now? If you have gotten married, had a child, bought a home, or even started a new job, you most likely will need an increase in coverage. Any time a new person becomes part of your life, you will most likely need to increase the amount of coverage on your term policy to account for their needs should you pass on.
In addition, a new job or a salary increase are reasons to review the terms of your term life insurance policy. Term life insurance is an easy way to replace your income to cover the needs of your loved ones should you pass. Anytime a change in your income occurs, review your term life insurance.
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.