Having a life insurance policy is a great first step towards protecting your family’s long-term financial security, but your policy is not something you should buy and then forget about. If you’ve had your policy for a while, it might be time to revisit it: it might no longer be right for your family’s needs, and you might need to increase your coverage to ensure that your family can live comfortably when you are gone. Remember, as your life changes, so will your responsibilities, so if you have experienced any of these following five life events, you should look into upgrading your policy.
1. You’re Growing Your Family
When you get married, you make a commitment to take care of your spouse, and life insurance is a great way to make sure you can continue to take care of them and support them even after you are gone. And if you choose to grow your family, you not only add a little bundle of joy to your lives, but you also add a lot of extra expense! According to the US Department of Agriculture, it costs $233,610 to raise a child to the age of 17, and that does not include the cost of college if you choose to help your children out with tuition. If you have recently added to your family, it’s time to increase your life insurance coverage, so you can be sure that all of these expenses will be taken care of if anything happens to you.
2. You Got A Raise
The majority of people purchase life insurance in order to replace the income that their household will lose if they pass away. That means if your pay increases, you should also increase your life insurance coverage, because your current policy will probably not be enough to cover your new income.
3. You’ve Bought A Home
Anytime you increase your financial commitments, you should look at your life insurance policy and consider whether the coverage will be enough in the long run. Purchasing a new home is a huge financial commitment, and the mortgage payments could be too much for your spouse and family to keep up with in the event of your passing, so you might want to add a term life insurance policy, which will provide coverage for the duration of your mortgage or any other long term financial commitments you have.
4. You’re Planning Your Estate
As you get older, you might choose to write a will or begin estate planning so you can leave an inheritance for your family, and you should absolutely include life insurance in these plans. You need to be aware that any inheritance you leave your family will be taxed, and might also need to go towards other expenses, so you will need to increase your life insurance coverage to make sure your family gets what you want them to get, even after the estate taxes and other expenses are paid.
5. Your Health Status Has Changed
If you or a family member has been diagnosed with an illness or condition that might require long-term care, it might be time to think about increasing your life insurance coverage. This will ensure that your medical bills or any future medical treatments for your loved one will be covered when you pass away.
They say the only constant in life is change, and that’s definitely true: you might add to your family or move up in your career, your children will grow, and your health might change; one thing that you can be sure of is that your financial responsibilities will increase every time your life changes. This means that it’s important to periodically review your life insurance policy to ensure that your loved ones’ financial stability will not be put in jeopardy in the future.
To make sure you have enough coverage, you can add riders to your policy for additional coverage, or you can search for a new life insurance policy – you might find that you can get one that is better and more affordable. If you need help reviewing your policy or deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.