Whether expected or unexpected, life altering events often equate to a change in your life insurance coverage needs. From buying your first home, to becoming a parent, to getting engaged, these major events come with great responsibility. With this new found responsibility comes the need for added life insurance coverage. As you hit these milestones, it’s important to evaluate your current insurance coverage, even if you’ve done so recently, and make adjustments accordingly.
Major Life Changes
As you age you will continue to experience these changes. Don’t assume that your life insurance coverage needs will remain the same. In fact, they just might become greater. Not convinced? Consider each of these:
Purchasing a Home
Whether it’s your first home, a vacation home, or a move to a different home, your life insurance coverage needs change dramatically when taking on a new mortgage. Your policy should cover the remaining cost of your mortgage(s). This is why it’s so important to revisit your life insurance policy any time you purchase a home.
From car loans to credit cards to student loans, you should carry enough life insurance coverage to settle all of your current outstanding debts. Any time you take on a new loan, or any type of debt, it’s important to evaluate your current coverage. Ensure that it will be settled if you pass away or become disabled.
When you say “I do” you’re promising to love and support one another. Together you and your spouse need to evaluate your individual life insurance policies. Determine if you’re carrying enough coverage to provide for the other in the event of the unexpected. Even if one spouse doesn’t work, consider the cost of paying a 3rd party to help with that person’s contributions to your home. From childcare to household chores; the cost can be extraordinary. This is why it’s so important to ensure you’re both carrying enough life insurance coverage. Additionally, it’s critical to name one another as beneficiaries on your policies, failure to do so can be detrimental.
Becoming a Parent
Becoming a parent is undoubtedly one of the most rewarding and overwhelming experiences of your life. Again, this is a critical time to reevaluate your life insurance coverage needs. Not only will you need to add your child as a beneficiary to your policy but you will want to purchase enough life insurance coverage to provide for your child. From braces to college tuition, be sure you’re carrying adequate coverage.
Supporting Aging Family Members
Having enough life insurance coverage to support dependant, aging family members is just as important as carrying coverage for the younger generation. If you find yourself faced with the responsibility of caring for and supporting aging parents or in-laws, take the time to review your life insurance coverage. Ensure that they will have the care and support then need if you’re no longer able to provide.
Receiving a Raise
Whether you’re changing employers or simply settling into the coveted corner office, with a raise comes new financial responsibilities. Once you’ve accepted the position, your next step should be ensuring you have adequate life insurance coverage for your new income level.
It’s a common misconception that those at retirement age no longer need life insurance coverage. It’s important to keep in mind that your financial responsibilities do not end with retirement. As you prepare to clock out for the last time, consider your responsibilities carefully. Make sure you’re still carrying enough life insurance coverage to provide for your loved ones as you do today and plan to in the future.
These are just a handful of the many life changes you’ll experience in your lifetime. As long as you take the initiative to reevaluate your life insurance coverage at each of these points you can relax and enjoy the ride. Want more tips and information about planning for your financial future? Follow the IntelliQuote Life Insurance Blog for the news and insights you’re looking for – while you’re here, check out these recent posts:
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