Buying life insurance is an effective way to protect those you love. However, if your policy doesn’t accurately reflect your current needs, it may not serve the purpose you intended. As you move through different stages of life and experience new milestones, your coverage requirements will change. In turn, there will likely be several occasions over the years that warrant an update to your policy. Here are a few times it’s vital to re-evaluate your coverage.

When Should You Reassess Your Life Insurance Policy?

1. Shifts in Family Dynamics

Since family members are usually the ones to collect death benefits from life insurance, any change in your family dynamics should prompt a review of your policy. This includes getting married or divorced, having a baby or grandchild, or adopting a child. You’ll want to make sure you add or remove beneficiaries as needed and adjust your coverage to account for the extra expenses that come with providing for a spouse and children. The payout from your policy will help ensure they’re able to maintain the same standard of living they enjoyed while you were alive. 

2. Changes in Employment 

Whether you switch careers, get a promotion, start your own business, or reach retirement, a change in your employment is another good reason to update your life insurance. If you’re earning more money than when your policy was purchased, you’ll need additional coverage to supplement the increase in income. As a business owner, you must have coverage to pay off loans, fund a partnership buyout, or allow your family to continue running the company. Moving into retirement means you’ll need to consider medical and long-term care costs. 

3. Increases in Assets & Debts

The more assets and financial obligations you have, the more life insurance coverage you typically need. This is especially true if you become a homeowner and take out a mortgage loan. Your policy should be amended so that it will provide enough benefits to cover the outstanding loan amount, as well as help your family keep up with insurance, property taxes, and maintenance costs. 

If you’ve recently gone through a significant life event or it’s been a while since you’ve reassessed your life insurance policy, reach out to Financial Strategies Group Inc. DBA Arlene Lear Insurance. They understand there’s no one-size-fits-all solution when it comes to protecting your family’s future and will help determine the best type and amount of coverage for your unique situation. Their experienced team of agents has been proudly providing the residents of Polk County, MO, with high-quality and affordable products for more than 40 years. Call the Bolivar office at (417) 777-3000 or the Humansville location at (417) 754-8377 to schedule an insurance review, or visit them online to learn more about their services.