Are you one of the millions of Americans who are underinsured? Think about it. That policy you bought years ago or only have through your employer might not adequately address your current needs and lifestyle. It’s important to review your policy every so often to help make sure your loved ones are protected financially.
4 Life Insurance Re-Evaluation Triggers
Most people with substantial financial obligations should consider life insurance as a means of support for those left behind if you are no longer there to provide for them. Whether support is for loved ones, or the preservation of a business or practice, having adequate insurance is important.
But as your lifestyle changes, so should your life insurance coverage amount. Which types of life events should prompt a re-evaluation of your current coverage?
- Getting Married
When two people combine their lives, they might bring their debt with them. Purchasing enough insurance to help make sure your spouse will be financially secure if you were to pass away should be one of the first things you do after getting married.
- Purchasing Property
Mortgage payments and living expenses often require two incomes. Without one income, mortgage payments may soon be too much for a surviving spouse to handle. And even if your spouse doesn’t work, life insurance on your spouse should be a consideration because of all the roles he or she plays in maintaining your family’s lifestyle. Without your spouse, you may have to hire someone to handle the day-to-day tasks previously done by your spouse.
- The Birth or Adoption of a Child
As your family grows, so should your life insurance coverage. Life insurance can help pay for everything from childcare expenses to college tuition should you or your spouse pass away.
- Begin Planning for Retirement
If you were to pass away there would be one less paycheck and one less person contributing toward retirement for you and your spouse. Adequate life insurance coverage can help protect your lifestyle now as well as in the future and help ensure that your spouse doesn’t need to worry about retirement.