When you purchased life insurance, your agent likely offered recommendations based on your habits and family situation at that time. However, change is inevitable. If you come across a major milestone, like the ones below, reach out again to make sure your policy still meets your needs.

When Should You Review & Update Your Life Insurance

1. Family Changes

If you get married or remarried, you may want to make your new spouse your beneficiary instead of whoever was there previously. If you get divorced, you may want their name removed in favor of another loved one. In some cases, your ex may argue for keeping their name on your life insurance for a set period as part of the divorce settlement—a matter you should discuss in-depth with your lawyer.

If you are a new parent, you may be interested in upping your coverage to help financially support your children should something happen to them.

Lastly, if someone you named as a beneficiary on your policy dies, you need to make a change so your estate knows how to direct your life insurance funds.

2. Buying a House

A new home usually includes a new mortgage. If you recently purchased one, you might want to enlarge your policy to cover the remaining balance should something happen to you. Additionally, remember to update the address and personal information on your policy when you move.

3. Change in Employment

Usually, the amount of life insurance in your policy is a multiple of your yearly income—since your family will likely need that much to sustain itself in your absence. When you change jobs, your family adjusts to that new lifestyle. Therefore, you might want to adjust your policy. If you start your own business, you will have unique considerations as well, since your family may be in charge of paying operating expenses in your absence.

 

When you’re anticipating a change in your life, Robert Rung Insurance in Lincoln, NE, can help you navigate the changes needed in your life insurance as well. As an independent insurance agency, they work with the leading insurance carriers in the U.S. and can advise you on how to protect your loved ones best. Call them at (402) 483-2279 with questions. Visit their website to learn more about their offerings.