Traditionally, people tend to purchase life insurance then forget all about it. Unfortunately, that is one of the worst possible things to do.
Learn why and when to adjust your life insurance with these quick life scenarios and other tips:
Change of marital status
Whether you are newly married, recently divorced or widowed, it is important to update your name and beneficiary information as soon as possible.
Be sure to review the terms of coverage to make sure it provides the type and quantity of coverage required for your new status.
Change of employment
If you are recently retired, unemployed or starting a second career, you may have different life insurance needs – especially if your employer no longer provides coverage. It’s easy to obtain life insurance quotes if you are self-employed or as a supplement to employer-sponsored coverage. Don’t forget to increase coverage in the event that your spouse has decided to stay home to care for children; the loss of income could be a double blow to your financial future without adequate life insurance and your ability to quickly restore a full income.
Change of financial situation
The recent economic crisis has resulted in the reduction of many retirement accounts, pension plans and even the appraised value of other assets you may have counted on to provide income or assistance in addition to life insurance. Re-evaluate your net worth and supplement life insurance needs accordingly to make sure your loved ones are provided for despite the recent economic downturn.
Change of dependents
While it’s natural to add life insurance with the birth of a child, few people remember to do so when granted the long-term care of parents or other dependents. Update life insurance to reflect the needs of adult dependents, aging parents, adopted children or others.