It makes sense to purchase life insurance early in life. The younger you are when you buy a policy, the longer you are likely to live and, therefore, the lower your premiums will be. But as time goes by, life changes and other factors can affect your coverage needs. Our experienced agent can review your life insurance policy with you and help you decide if it is time to upgrade.
Life insurance is there to provide financial protection for your loved ones in the event of your death. Various factors can affect the amount of coverage you need at different stages of life.
When you marry, your finances are combined with those of your spouse. When you divorce, the opposite is true – your finances are legally separated. Either marriage or divorce could affect the amount of life insurance coverage you need. It is also likely in either event that you will want to change the beneficiaries on your policy. If you are getting a divorce, check with your attorney before changing your life insurance beneficiaries. Some divorce decrees contain stipulations regarding life insurance.
When a child is born into your family, that child will be dependent on you until he or she reaches adulthood. You will want to add the child as a beneficiary on your policy, and it may be a good idea to upgrade your coverage to include future expenses, such as a college education. Whether one parent works and the other stays at home, or both parents are working, it is important to have enough coverage to protect your family’s newest member.
A home mortgage is a long-term financial commitment. Would your spouse be able to make the payments if something should happen to you, and still cover other important expenses, such as college tuition? If not, consider increasing the amount of your death benefit.
Entrepreneurship is on the rise in the U.S. If you have joined the ranks of the self-employed and started a business of your own, it may be a good time to upgrade your life insurance policy. The first few months or years of a startup are typically relatively lean. This might leave your spouse or partner in a difficult position if something should happen to you.
It is a good idea to review your life insurance coverage once a year. This is a great time to review your income, assets, liabilities, expenses, and risks, and update your entire financial plan, as well your life insurance. Our knowledgeable agent will be happy to review your policy with you, to help ensure your death benefit is adequate and your named beneficiaries are up to date. If you decide you need additional life insurance at this time, we can assist you with adding supplemental coverage or purchasing a new policy.