Compared to other types of insurance policies, life insurance is fairly simple. For the most part, you choose the amount and time you want to be covered and pay your premiums. But sometimes, changes in your life may warrant updates to your policy—such as extending a term plan or increasing a coverage limit. To help you ensure that your plan is working best for your current needs, here are events that should prompt a review of your life insurance.

5 Events That Could Require a Life Insurance Update

1. Better Job 

A life insurance benefit should be enough to replace your income so your surviving family members can remain financially stable. As your income grows with new jobs, raises, and promotions, it’s a good idea to make sure your policy’s benefit accurately reflects your current income. Otherwise, your loved ones may end up with a less-than-sufficient payment if you pass away.

2. Marriage

When you’re single, you might have a smaller death benefit that can comfortably cover any debts or funeral costs you leave behind. But once you get married, you may need to increase this amount to cover the financial needs of your spouse. You should also make sure they are listed as a beneficiary so they can receive the payment.

3. New Child

If you have a child, you may want to increase your life insurance benefit. Increasing this amount will ensure that, should you pass away, your offspring will have enough funds to cover the cost of their care, education, and other needs. If you want these funds to go directly to your child, you will need to make sure they are listed as a beneficiary or have a trustee who can manage their funds according to your wishes.

4. New Financial Obligations

If you’re launching a business or buying a home, you will have additional financial responsibilities to consider. Your life insurance benefit amount may need to be increased to cover these obligations.

5. Losing Loved Ones

Typically, if your beneficiary passes away before you do, your life insurance benefits will either go to your estate or a listed second beneficiary. If a second beneficiary dies, their allotted funds will go the primary beneficiary. When this isn’t how you want benefits to be handled upon your death, you should always update your beneficiaries if one of them passes away.

At Farmers Insurance Group, we believe that life insurance should be designed to fit the specifics of your life. That’s why we take a personalized approach to learn about your concerns and how to cover them. We’ll also work to help you secure nationally recognized coverage that reasonably fits your budget. If you’d like to request a free quote, call us at (417) 926-7900. You can also learn more about our products and services on Facebook.