Changing Your Life Insurance Coverage Based on Life’s Changing Needs
While you may not realize it, each time you have a major event in your life, you could be unknowingly leaving someone out of their inheritance. And likewise – you may even be giving money to someone you don’t want to have it! That why it’s important when changing your life insurance coverage based on your needs.
That’s right. Each time you have an event in your life such as a marriage or divorce, or a birth or death in the family, it is important to review your life insurance coverage. This is because when your life has significant changes, your need for life insurance coverage will usually also change along with it.
In some cases, it can mean that you need to purchase a policy. In other scenarios, it could signify that you should review your insurance needs and either raise or lower the amount of coverage in line with your new and current requirements.
When Should You Review or Consider Purchasing Coverage?
Over time, your life may include a number of various milestones. These may encompass getting your first “real” job, getting married, and starting a family. In reality, though, not all of life’s key events are happy ones, and these can include the loss of employment, divorce, and / or the death of close family members – including your spouse or significant other.
In all of these instances, it is still important that you ensure your financial plans are protected, and this includes having the right amount of life insurance coverage for your current needs. It also means making sure that the beneficiary that you have named is the right person (or entity) that you intend for the proceeds.
What Type of Coverage Should You Choose?
The type of coverage that you should choose will depend primarily on the needs and goals that you have. For example, many young couples that are just starting out may want as much coverage possible at an affordable premium price. In this case, term may provide a good solution for them at the time.
For those who want ongoing protection, along with a tax-deferred savings option, a permanent policy such as whole life, universal life, or variable life could provide a better plan for them, as these types of policies offer many options for both death benefit coverage, as well as ongoing savings.
When choosing the right type of policy for your needs, we can help. We work with more than 40 different carriers, so we can locate the very best solution for your current situation – and can also help you to change your coverage as your requirements change over time.