October 19, 2023
Have you taken a moment to reflect on the significance of having life insurance?
It goes beyond just providing financial protection for your loved ones in the event of your passing. Life insurance allows you to offer essential financial support to those who matter most to you. However, have you considered whether your life policy still meets your current needs since you initially purchased it? Take a moment to review and ensure that it aligns with your present situation.
To help you with this process, we have compiled a comprehensive list of 9 reasons why it is important to review your life insurance policies annually.
1) Changes in Beneficiaries: Beneficiaries are the individuals who will receive your life insurance death benefit. It’s essential to regularly check and update your beneficiaries based on significant life events, such as marriage, divorce, or the death of a named beneficiary. Consider how you want the proceeds to be distributed to make the claims process easier for your loved ones.
2) Growing Family: As your family expands, it’s important to ensure that your life insurance coverage adequately meets your evolving needs. From final expenses to loss of income, your coverage should align with your changing family dynamics.
3) New Job: Embarking on a new job is an exciting step towards achieving your dreams. It’s a wonderful opportunity that can open doors and bring you closer to your bigger goals. Whether you’ve received a promotion or started a new job, it’s important to touch base with your agent and ensure that your policy still aligns with your needs. Don’t forget to consider any extra income you may be earning.
4) Starting a Business: If you’ve recently launched a new business, it’s crucial to evaluate your life insurance coverage. Consider obtaining an additional policy to help cover any significant loans or personal contributions you made. Ensure that you have sufficient coverage to meet your new obligations.
5) Added Debt: Acquiring loans, such as home equity loans or credit consolidation loans, can impact your financial situation. Reviewing your life insurance while updating your monthly budget will provide relief to your beneficiaries by helping to ensure comprehensive financial coverage.
6) Changing Conditions For Your Parents: If your parents have experienced changes in their living situation, such as moving to an assisted living facility or moving in with you, it may lead to increased financial burdens. Consider adding coverage to account for these costs in addition to coverage for your aging parents.
7) Marital Status Change: A change in marital status necessitates a review of your life insurance policy. Ensure that your partner is named as a beneficiary, and update your beneficiaries to reflect your current wishes. This applies to recently engaged or married individuals as well as divorced or separated couples.
8) New Home: If you’ve recently closed on the purchase of a new home, it’s an exciting milestone that deserves some attention from your insurance agent. With a new mortgage in play, it’s important to ensure that your family can continue living there comfortably, even after you’re gone.
9) Your Children Have Embarked on Their Own Journeys: As your children grow up, they begin to carve out their own paths in life. However, they may still rely on your financial support, especially when it comes to starting college. If your children are becoming more financially independent, you might want to consider redirecting the benefits elsewhere.
Life is constantly changing, and it’s important to adjust your life insurance policy accordingly.
Contact us today to ensure that your policy evolves with your life.