Life insurance is a vital risk management tool and a component of any comprehensive financial plan. However, as we go through life and reach different stages, our life insurance needs evolve. What may have been satisfactory at one point may not be later on. Below is an explanation of when and why you should reexamine your life insurance needs.

4 Signs Your Life Insurance Policy Should Change

1. You Join the Workforce

After you graduate from high school, college, or trade school, and you become gainfully employed, you should consider life insurance. You are now an adult, and although you are likely to be healthy and have no dependents, consider who would pay for final arrangements if an accident should happen or sudden illness strikes. A life insurance policy takes the financial burden off your loved ones, and it will cost you very little as a young, healthy person.

2. You Get Married

Now that you have someone who depends on you, you should increase your policy. Consider one with a death benefit that will help your spouse through the tough months after your death, along with paying for your funeral and burial.

3. You Have a Child

As a parent, you have financial goals you want to meet for your child or children. Whether it's to set aside enough money for college, to set them up in business, or to give them a financial head start, a life insurance policy will help you reach those goals. Reevaluate after each new birth.

4. You Retire

As a retiree, you may be an empty nester with a paid-off mortgage. If you are in stable shape financially, have no children who look to you for care, and have no outstanding debt that needs repayment, you may no longer need a substantial death benefit. Consider scaling back your policy to something that pays enough for the final expense. If you pre-paid for this already, consider dropping the plan entirely.

To discuss your life insurance needs with an experienced agent, contact Hummel & Plum Insurance Agency in Chillicothe, OH. They have been a trusted presence in Ross County since 1904 and are renowned for their commitment to customer service. In addition to life insurance, they also offer farm, home, business, health, and auto insurance. Call (740) 773-1620 to work with a friendly, helpful agent or visit their website to request an insurance quote.