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Purchasing life insurance is one of the most effective ways to protect your family’s financial future. However, it will only provide for them as intended if the policy properly reflects your circumstances at the time of your passing. Many people buy coverage and never think about it again, but as you go through different life experiences and your finances change, your coverage needs also change. As such, there will be many times over the years when you should reexamine your policy to ensure it’s still appropriate. Here are a few events that will prompt a life insurance update.

When to Make Changes to a Life Insurance Policy 

1. Getting Married 

If you already have life insurance when you get married, you’ll need to add your new spouse as a beneficiary on the policy so they can receive the death benefits. Should you pass away, these funds will help them continue to cover the household expenses and maintain the same standard of living your income supported.

2. Having Children 

There is never a more necessary time to make sure you have adequate life insurance than when your family is growing. The birth or adoption of a child will likely warrant a coverage increase. You’ll want to ensure your policy is sufficient to provide for their day-to-day needs and future education expenses. 

3. Becoming a Homeowner

life insuranceBuying a house is a significant financial commitment. If you were to pass away before the mortgage was paid off, your family should have the comfort of knowing your life insurance policy can help make the remaining payments. In turn, you might need a higher death benefit.  

4. Entering Retirement 

Once you leave the workforce, you may no longer require the same amount of coverage you did before. If your children are financially independent, the mortgage has been paid, or you’ve downsized your assets, consider reducing your death benefit. 

 

Whether you’re buying life insurance for the first time or you need to reevaluate a current policy, Alcorn Insurance Agency in Chama, NM, can help you make informed decisions. They’ll explain all the coverage options and offer a personal assessment of your needs. For 30 years, residents in and around New Mexico, Colorado, and Oklahoma have depended on the locally owned agency to provide them with access to high-quality and affordable products. Call (575) 756-1102 to speak with a knowledgeable industry professional, or visit their website to request a quote. 

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