When people purchase life insurance policies, they will often take a “set it and forget it” approach. But life has many stages—and your coverage needs can vary greatly whenever you shift to a new chapter. As such, it’s essential to reevaluate your policy every so often to ensure that all your financial needs are adequately covered and that you’re paying the most affordable premium. To help you maximize your coverage, here are a few situations when you should review your life insurance.

5 Times to Reassess Your Life Insurance Plan

1. Growing Family

A solid life insurance plan should provide your loved ones with the financial support they need in the event of your passing. When you build your family—such as when you get married or have a child—you’ll want to change your policy to ensure that you’ve listed all the beneficiaries you want to be covered. You might also increase your death benefit to account for the growing needs of your household.

2. Job Promotion

When people figure out how much life insurance they should have, they generally stick to limits that reflect their current income level. If you follow this strategy, it’s crucial to increase this limit anytime you get a salary bump—such as when you are promoted.

3. New Financial Liabilities

As you grow older, you may find yourself having to take on more financial responsibility—such as a home mortgage or a child’s college tuition. Anytime you add one of these new expenses to your life, take time to increase your life insurance coverage limit to ensure your loved ones aren’t left with unexpected debt.

4. Improved Health

Many life insurance policy premiums are based on the overall state of your health. Specifically, if you face any potentially life-threatening conditions, you may have to pay a higher rate. However, if these health circumstances improve, you can ask your provider to reevaluate your medical risks, and possibly lower your premium.  

5. Death or Divorce

If you get divorced and forget to update your beneficiaries, your life insurance benefit may still payout to your ex-spouse. Similarly, if your spouse or any other beneficiary passes away, you may no longer need as high of a death benefit. By accounting for this change and reducing your interests, you may end up paying a lower premium.

As important as life insurance is, choosing the right plan can be overwhelming. That’s why Farmers Insurance is committed to helping my clients gain optimal coverage for the most affordable rates. Focused on personalized care, their team will work with you to ensure your policy fits your current lifestyle. For even more protection, their agency can set you up with comprehensive health insurance and affordable prescription plans to adequately cover all the risks in your life. You can learn more about these options on my website, following my team on Facebook, or by calling the Mountain Grove, MO, office at (417) 926.7900.