You did your research, and, after comparing several plans, secured the right life insurance policy. Faithfully, the premium payments are paid each month, quarter, or year. But along the way, your life has likely changed in many ways. Now may be a good time to take another look at your policy to determine whether modifications are needed.
When to Review Your Life Insurance
1. New Debt
If you've taken out a mortgage or car loan, or have started paying off student loans since securing your life insurance policy, your coverage may need to be re-examined. If something happens to you, a spouse or even adult children may be responsible for paying off all outstanding debt. Talk to an agent about possibly increasing the coverage amounts.
If you have a life insurance policy in place before getting married, contact your carrier to add your spouse as a beneficiary. Now is also a good time to determine how much of the death benefit will be adequate for your partner. Some couples may also consider purchasing secondary policies on each other for added financial protection.
3. Birth of Children
Whether you're married or not, having children is another key time when a life insurance plan may need to be updated. The kids should be added as beneficiaries to the policy. If long-term plans include college for your little ones, consider increasing your existing coverage amount to help pay for the expenses.
4. Change in Income
A significant change in salary or losing a job are also ideal times to re-evaluate your life insurance plan. You want to make sure the existing coverage amounts are still adequate. Particularly, with a drop in income or unemployment, there should be enough funds to replace your previous income. A good rule of thumb is to multiply your annual salary by between five and 10 to determine the coverage amount.
Life is full of the unexpected. Having proper life insurance in place offers financial peace of mind. The team of experienced and friendly agents at Tim Bryan Insurance in Andalusia, AL, will gladly review your existing policy to ensure the coverage has kept up with any significant changes. To get started, call (334) 222-1460 today and schedule an appointment.