Does My Life Insurance Policy Need to Be Reviewed?
By purchasing life insurance, you can ensure the financial security of people who matter most to you. But since you purchased your life insurance, have you taken the time to check that it still satisfies your needs?
Because your insurance needs may alter as your life changes, it’s crucial to check your life insurance coverage. Many of us take the time to quickly shop around when our annual notice to renew our home or car insurance arrives to see if we can save some money. Why not do the same thing with your life insurance? It’s beneficial to compare numerous policies, and you’ll frequently be surprised by the amount of money you can save. It’s quite simple to compare all the life insurance choices on the market today.
Because so much may happen in a year, we advise reviewing your life insurance coverage annually. It’s crucial to confirm that your insurance still fits your needs and those of your family. Find any coverage gaps brought on by a shift in your situation, your health, or the demands of your beneficiaries. It’s easy to make changes or additions to your cover.
Why change your life insurance policy?
Changes within Your Family
We are all aware of how expensive raising a child is, thus it is imperative to ensure their financial security. It’s crucial to take a close look at your current coverage if you’ve added a new member to your family. The amount of life insurance needed should correspond to the number of people who depend on you financially. To make sure they can be taken care of financially for the foreseeable future, you need to boost your level of coverage. If your kids are now in their teens, you might also want to evaluate your cover. Are you prepared financially for university? Do married adult children, on the other hand, require less protection now than they did in the past?
You Started a New Job or Started Your Own Business
Your life insurance policy may need to be modified whenever your financial situation changes. It’s critical to take additional income into account. Another possibility is that you may now afford a greater level of insurance that you had to put off before. Your family might not be able to continue running the company if you began it on your own. You’ll also want to make sure that you have enough life insurance to pay this additional debt if you took out a loan that your loved ones would be liable for. Make sure your insurance covers this change, and it could be a good idea to look into income protection.
Marital Status
Few life changes will be more significant than a change in your marital status. You’ll probably want to make sure that your partner has financial security in case the worst happens if you’re recently engaged or married. It’s crucial to name your spouse as the beneficiary of your life insurance policy as well.
Couples who are divorced or apart are likewise affected by this.
Make sure your beneficiaries are accurate and match your preferences by taking the time to update them.
You Just Purchased a House
If you’ve just bought a new house, check your insurance to see if your coverage will cover the mortgage as well. Again, splitting expenses between two incomes is feasible, but could your partner afford to buy a home on his or her own? particularly if you have kids.
Your Beneficiaries Change
While still unmarried, many people purchase life insurance and designate their parents or even grandparents as beneficiaries. You could wish to re-evaluate your beneficiaries if you got married later on and started having children. Additionally, it might be appropriate to review your current life insurance policy if your beneficiary dies, ceases to be a part of your life, or gains financial independence.
Life insurance advice: Put your policy in trust so that your beneficiaries will get the lump sum payment directly. If you want the proceeds of your life insurance to go to your minor children, you must name a responsible adult who will make choices regarding their upbringing. Life insurance companies won’t give kids their death benefit money immediately. Make any necessary beneficiary adjustments as your kids get older.
You just obtained a new loan.
A loan involves taking on extra debt. Consider changing your insurance policy if the loan is substantial enough to put your loved ones through financial hardship if you pass away. A car loan is a fantastic illustration of when you could think about checking your life insurance. You don’t want your loved ones to inherit this debt.
Changes in Health or Lifestyle
Have you started a new health plan? Perhaps you’ve stopped smoking or lessened the severity of a health problem. You can be eligible for new life insurance rates, therefore it might be advantageous to reapply. A few instances of how a health modification can lower your rates are quitting smoking, lowering your cholesterol, and lowering your blood pressure. Another factor to take into account when reapplying for life insurance is if you changed careers or engaged in activities that were previously viewed as risky. You can reapply to determine whether you can qualify for the non-tobacco risk classes after quitting smoking and abstaining from tobacco for 12 months.
After a loved one passes away, life insurance is crucial in assisting families in meeting their financial obligations. It’s crucial to review your financial plans when things in your life change to make sure that your needs are being met. Please use our online quote system or schedule a conversation with one of our expert advisers if you believe your life circumstances have changed since you last bought a policy or it is time for your annual review. If necessary, they will be pleased to change your cover after talking with you about your needs.
