Life Insurance can be overwhelming. Choosing the right type of policy, selecting limits, obtaining quotes, and reviewing coverages can be daunting tasks.
However, life insurance is one of the best ways to protect your family if you unexpectedly pass away. It will give your family the financial security to pay the mortgage, college tuition, loans, and other expenses.
What about when you already have a policy? We have found certain life events that should trigger a review of an existing policy to ensure you still have the right policy and coverage for your needs.
Please get in touch with our office if you have any questions or concerns about life insurance.
Top 5 Life Triggers
1. Births, deaths, divorces, and marriages: Whenever a significant life event occurs in your family, it makes sense to review your life insurance coverage.
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 reduce your need for life insurance.
2. Change in financial situation: Changes in your financial situation could signify a need to adjust coverage limits or policy type. For example, job loss may indicate the need to change from a whole-life policy to a term policy. However, if you were to sell a property or business, you may be liquid enough to reduce the amount of coverage.
3. Retirement: The goal at retirement is to have enough passive income generated by investments and pensions. Depending on your situation, that might mean you no longer need life insurance. On the other hand, if your spouse doesn’t have enough income if you pass away after you retire, you might need more life insurance.
4. Tax-law changes: Very few people need to worry about estate taxes, but that could change anytime. Life insurance is a great way to solve that problem if you end up having a taxable estate.
5. Every two years: Unfortunately, many situations predicting a need to change life insurance are impossible to predict. And even if you know something will happen, you can’t guarantee 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. We recommend regular meetings to ensure you always have the right coverage and policy.
