Your life insurance policy might have been perfect for you when you purchased it, but does it have all the coverage you need now? Even if you spent time researching and working with an insurance professional to get the right coverage, major life events can change your coverage needs. If any of these have made an appearance in your life recently, it’s time to take a fresh look at your coverage needs:
You recently got married, or divorced.
Getting married means combining your finances with your spouse’s. Any change in your financial situation warrants a call to your insurance agent to reevaluate your policy and make sure you have enough coverage. You’ll also want to update your beneficiaries so that your husband or wife will receive the death benefit if something were to happen to you.
While divorce is not necessarily an enjoyable life event, it is one that should also prompt you to take a look at your life insurance coverage. You may want to decrease the death benefit, but always make sure to consult with your attorney before making these changes.
Your family is growing.
Welcoming a new baby to the family is exciting and joyful – and also a crucial time to check in on your life policy. You’ll want to add your child to your policy and make sure you have enough coverage for the expense of raising a child and consider future expenses like college funding. If one parent is staying at home with the child this is especially important, but you should check in on your policy even if you’re both working.
You got a new job.
Your first few months at a new job can be busy and overwhelming, with lots of decisions to be made. Don’t forget to check in on your life insurance coverage during your transition – especially if your new job came with a salary boost. More income might mean more life insurance coverage to match. You’ll also want to look into the availability of an employer-sponsored plan, though in many cases you’ll also want supplemental coverage.
If you previously had access to an employer-sponsored life insurance plan, you’ll need to look into other options once you retire. Your coverage needs might also shift during this time in your life. The length and type of coverage will depend on factors such as how long you expect to live, how many children or grandchildren depend on you financially, and how much debt you have. Certain type of life insurance allows you to take money from the death benefit to use as supplemental income during retirement. It’s important to talk to your local insurance agent about the coverage that’s right for you during this time of change.
You bought a new house.
Getting the keys to a new house is another exciting time for your family – and another important time to take a look at your life insurance policy (as well as a homeowner’s insurance policy!). Consider your mortgage payment, and whether your spouse would be able to pay it each month if something were to happen to you. If you have children, would your spouse be able to pay the mortgage in addition to expenses like college tuition? If the answer is no, you need to increase your death benefit to provide the funds your spouse would need to cover those costs on their own.
Times of big life change are exciting and sometimes stressful. Updating your life insurance policy might not be top of mind during these big events, but it’s important to make sure you and your family are covered. One of the advantages of working with a local independent agency like SBI is that we’re here for you through all of those life events, and will work with you to make sure you have the coverage you need.
Does your insurance policy need a checkup? Fill out the form below and one of our insurance experts will contact you to go over possible gaps in your coverage and the best options for your specific needs.