It’s been a few years since you secured a life insurance plan. While the coverage was ideal for your unique needs at the time, much has changed since. There are a number of milestones to consider when looking into updating an existing policy. 

4 Reasons for Updating Your Life Insurance Policy

1. Job Change

A new job with a higher salary may not be compatible with your current life insurance coverage. Ensure that the payout is adequate for taking care of a spouse or children in the event something happens to you. This also applies when starting a new business or becoming self-employed. An experienced insurance agent can help determine what adjustments should be made to an existing policy.

2. Marriage and Divorce

One of the key changes most newlywed couples do is the addition of their spouses as beneficiaries on their life insurance plans. Both couples should initiate the updates on their respective policies. If a married couple divorces, they will also need to remove their ex-spouse as a beneficiary. Making these changes helps eliminate any surprises during the distribution of the policy’s death benefits.

3. Financial Changes

From buying a home to receiving an inheritance, there are a number of financial changes that can affect your life insurance coverage. You want your death benefits to accommodate more income or debt accumulation. Scenarios such as retirement, paying off a mortgage, or children become adults may also require a coverage update.

4. Birth of a Child

Naming a child as a beneficiary on your life insurance policy ensures they have financial protection. With each child born, it’s important to update your coverage, including the percentage distribution of the policy’s death benefits. While the benefits are typically split evenly among all children, you can select different amounts based on age and other factors. 

For more than 85 years, Truax Insurance has provided professional and customized coverage guidance to individuals and families. With offices in Ogdensburg and Sandy Creek, NY, the experienced agents will listen to your needs and recommend a life insurance policy that is affordable, reliable, and comprehensive. You can also count on follow-ups to ensure your life’s updates are compatible with existing coverage. Call (315) 393-3805 for more information and visit the website to request a free life insurance quote.