When to Review Life Insurance Coverage
Life insurance protects your family when you are no longer around to help them. However, it can only do this if it’s up to date and in line with your needs. While life may be busy and always hectic, there are key moments in life that call for a life insurance policy review. Here are just a few.
When your family status changes – Whether you’re getting married or having a baby, you’ll want to protect your growing family with more life insurance coverage. Losing a family member through death or divorce should also prompt a policy review. Remember to review and change the beneficiary designations on your existing policies, as needed.
When your employment status changes – Whether you got a promotion and a raise in pay, got laid off, or resigned to start your own business, it’s a good idea to ensure that you have enough life insurance to suit your finances. If your family relies on your increased income, then you will need to update your life insurance policy to reflect that new change.
When you buy a house/property – Large purchases like a house require thorough planning. It’s a huge financial responsibility because it entails getting a mortgage. Should anything happen to you, having life insurance can help your surviving family pay off the loan minus the financial difficulties.