How long has it been since you last reviewed your life insurance coverage? If you are like most people, chances are you long ago filed your policy away and haven't thought about it since.
But life is not static, and circumstances change. Major life changes can shape how much financial protection you and your family need. But more than major life changes can affect your policy coverage, so it's a good idea to revisit your policy on an annual basis to see if it still offers the coverage you need.
Life changes
If you have a major life change, you should contact us for a full review of your policy. The change may have a significant impact on your insurance needs. Life changes may include:
- Marriage or divorce
- A child or grandchild who is born or adopted
- An increase in your salary or starting a new job
- Significant changes in your health or that of your spouse/domestic partner
- Taking on the financial responsibility of an aging parent
- Purchasing a new home
- A loved one who requires long-term care
- Refinancing your home
- Coming into an inheritance.
Even if a year goes by without any major life events, it's still a good idea to review your coverage. The amount of your life insurance coverage should be sufficient to meet the current obligations and future needs of your loved ones. Some of those things can change without a major life event.
Other factors
If you have taken advantage of historically low interest rates and recently refinanced, make sure you have enough coverage to satisfy your new loan obligations. If you're single, consider the cost of a funeral, outstanding medical bills, credit card balances and ongoing financial assistance for elderly parents who may be dependent upon you.
And while you're reviewing your coverage, it's also a good idea to confirm that your current beneficiary elections are still accurate.
Financially, you should review your life insurance policy on a yearly basis. Reviewing a life insurance policy alone can be a complicated endeavor, but we can guide you through analyzing your policy.
Also, if you have one of the above life-changing events, and if you're uncertain whether your current coverage is meeting your family's needs, contact us for a needs analysis to provide you the peace of mind that your family will be taken care of should the worst happen.