3 Reasons to Update Your Life Insurance Policy
Life insurance provides an invaluable payout to loved ones if you pass away unexpectedly. As your life changes, it’s crucial to adjust your policy to ensure your family is covered. The following milestones warrant a call to your insurance agent.
When to Update Your Life Insurance
1. Health Conditions
If you were recently diagnosed with a new health condition, it’s worthwhile to update your policy. For example, you may want to update from term life to guaranteed life insurance if you have concerns about advanced health needs 10, 20, or even 30 years from now. Guaranteed plans don’t expire or require a health exam, so family members will receive a fixed payout no matter what.
2. Family Changes
New family members mean more expenses. Whether you’ve just gotten married, adopted a child, or had your third kid, upgrade your policy.
Ask your insurance agent also about updating the policy’s beneficiaries so that the money goes to the intended people. It’s also wise to update your plan if you’ve invited an aging parent to live with you or moved them to assisted living. A higher payout will cover any expenses they require.
Updates work both ways. If you’ve recently divorced, change the beneficiary on your plan from the ex-spouse to a sibling. You may also be able to decrease the death benefit and lower your monthly premiums.
3. New Debts
Life insurance needs to cover the bulk of surviving loved ones’ expenses. If you’ve recently bought a new home or started a business, increase your coverage. Family members will inherit mortgages and loan debts if you pass. A larger payout ensures that they can cover these costs and still have money to handle everyday expenses.
Contact Northwoods Insurance Agency if you want to explore your life insurance options. Based in Crandon, WI, this agency brings a variety of plans and 30 years of experience to its customers. Start learning about their auto insurance, health coverage, and homeowners plans on their website. Schedule a consultation by calling (715) 478-2215, or receive more tips by connecting on Facebook.
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