It’s not uncommon for a life insurance policy to remain active for decades. Since your circumstances will inevitably change over 20, 30, or 40 years, though, review your coverage periodically, so you can modify it as needed. Here are just a few scenarios that may warrant changes to your coverage.

3 Reasons to Update Your Life Insurance 

1. Change of Marital Status

Upon getting married, you may want to make your new spouse a designated beneficiary on each policy. Upon getting divorced, on the other hand, you may want to remove him or her and assign the funds to your children or to another family member who relies on you financially.

It’s also wise to review your coverage after having children. Chances are it will no longer be enough, especially if you intend to pay for major expenses like their college tuition or weddings. 

2. New Significant Debt

Whether you buy a home, finance a vehicle, or take out a small business loan, evaluate your life insurance. Will your current coverage provide enough for your family to pay off the debt in the event of your untimely passing? If not, talk to a reputable agent about purchasing more. 

3. Maxed Out Retirement Contributions

As your career progresses, you may be able to start putting aside a significant portion of your earnings for retirement. Once you get to the point where you’re maximizing 401(k) or IRA contributions every year, consider supplementing your savings with a whole life insurance policy.

Such policies accumulate a cash value over time. After you’ve paid into it for a while, you can start borrowing against that amount during your lifetime. Unlike distributions from other kinds of savings accounts, these withdrawals are tax-free. 

If your circumstances have changed and you need more life insurance coverage, turn to Comaltex Insurance Agency Inc. Located in New Braunfels, TX, this locally owned and operated company has been serving families and businesses across Hill Country since 1948. Their knowledgeable agents will be happy to help you find a policy that meets all your needs. To request a quote, call (830) 625-7511. Learn more about their products online.