As a driver and homeowner, you are required to carry home and auto insurance. If all goes well, you’ll never experience a car accident, home invasion or natural disaster that makes that insurance worthwhile. The peace of mind it brings is worth it. And although life insurance isn’t mandatory, it provides an immeasurable benefit to loved ones when we pass away. When we think about family, the real value of life insurance becomes evident.
Every single one of us will face the end of life. When that time comes, what will your life insurance be worth? Not in dollar value, of course – thats a question for your SelectQuote licensed agent. But what will the value be to your loved ones? Will it mean a stay-at-home spouse can continue caring for the family instead of scrambling to find work and affordable childcare? Will it mean the relief of not worrying about paying for a funeral and burial? Or the ability to stay in the family home or send the children to college? Or will it mean an already retired spouse and adult children will have extra money to invest?
Its normal to think of budgetary reasons to get rid of life insurance policies. It may be worth exploring how to adjust life insurance coverage to meet your changing needs.
If youre retired, or your family doesn’t rely on your income, it may make sense to scale back your life insurance policy. For example, if youre in your 60s and retired, with a retired spouse, educated, independent children, a paid-off home and healthy retirement assets, you likely dont need the million-dollar policy you once did.
If youre still in an allowable conversion period (meaning you can alter the terms of your policy using the original health rating), it might make sense to convert to a smaller, permanent policy. If, however, conversion requires you to retake the health assessment … its likely your now-older self would end up paying more for a smaller policy. In that case, retain your original policy
To discuss life insurance coverage options, a SelectQuote agent is available to help make the best decisions for you and your family.