Life insurance provides your loved ones with financial security in case of your death, helping to ensure that they will be financially protected and able to meet their obligations. However, your life insurance needs may change as your life changes. As a result, it’s essential to regularly review your life insurance policy to ensure that it still meets your current needs. Here are times when you should review your life insurance policy.
Your family has grown.
Your financial responsibilities increase as your family grows. Whether you’ve recently welcomed a new child, adopted a pet, or taken in a relative, reviewing your life insurance policy to ensure that it provides adequate coverage for your loved ones is essential. When you review your policy and make any necessary adjustments, you can help ensure your loved ones are financially secure.
You started a new job.
Starting a new job is exciting, but reviewing your life insurance policy is essential this time. Many employers offer life insurance as part of their benefits package, and you may need to adjust your coverage to reflect your new income and financial obligations.
You’re starting a new business.
As a business owner, you may have new financial obligations and responsibilities that your life insurance policy must reflect. For instance, if you’re taking on debt or investing a significant amount of money in your business, you may need to increase your coverage to protect your loved ones.
New marital status.
Changes in marital status, whether it is marriage or divorce, can significantly impact your financial situation and life insurance needs. For example, as a newlywed, you may want to increase your coverage to protect your spouse financially, while divorce may prompt you to change your beneficiary designation.
You bought a home.
Buying a home is a substantial financial commitment, and it’s essential to review your life insurance policy to ensure that it provides adequate coverage. Your mortgage is likely one of the most significant debts you’ll ever have, and your life insurance policy should be sufficient to pay off the balance if you die unexpectedly.