Life Insurance can be overwhelming. Choosing the right policy, selecting limits, obtaining quotes, and reviewing coverages can be daunting.
However, life insurance is one of the best ways to protect your family if you were to pass away unexpectedly. It will give your family the financial security needed to pay the mortgage, college tuition, loans, and other family expenses.
What about when you already have a policy? We have found certain life events should trigger a review of an existing policy to ensure you still have the right policy and coverage for your needs.
If you have any questions or concerns about life insurance, please feel free to reach out to our office.
1. Births, deaths, divorces, and marriages: It makes sense to review your life insurance coverage whenever there is a significant life event in your family.
For example, when your children become independent, your financial burdens are reduced, and you might not need as much life insurance. Likewise, if your spouse lands a great job, that might also reduce your need for life insurance.
2. Change in a financial situation: Changes in your financial situation could signify a need to adjust coverage limits or policy type.
For example, the loss of a job may signify the need to change from a whole life policy to a term policy. Whereas, if you were to sell a property or business, you might be liquid enough to reduce the current amount of coverage you currently have.
3. Retirement: The retirement goal is to have enough passive income generated by investments and pensions.
Depending on your situation, that might mean you don’t need life insurance anymore. On the other hand, if your spouse wouldn’t have enough income if you were to pass away after you retire, you might need more life insurance.
4. Tax-law changes: Right now, very few people need to worry about estate taxes, but that could change anytime. If you have a taxable estate, life insurance is a great way to solve that problem.
5. Every two years: Unfortunately, many situations predicate a need to change life insurance is impossible to predict. And even if you know something will happen, you can’t guarantee that you’ll be insurable when they do.
That’s why the most crucial trigger is time. Insurance is meant to protect your family against possible future risks. This is why we recommend regular reviews to ensure you have the right coverage and policy all the time.