You might think that a life insurance policy is something you purchase and tuck away in a drawer or safe deposit box until it matures or your beneficiaries need it. That would be a very big mistake. Throughout your life, there will be many events that can have a significant impact on your life insurance coverage. At bare minimum, you should review your policy once a year – or more frequently as any of the following occur.
Marriage or Domestic Partnership
Congratulations! You’re a couple and like many couples, you’re also a two-income family. Of course, you’ll want to add each other as beneficiaries to any existing policies. While you’re at it, make sure you each have sufficient life insurance to help the surviving partner pay for your funeral, meet any financial obligations you leave behind along with a cushion while he or she adjusts to life without you. If you don’t have life insurance, now is a good time to look for quotes; e life insurance makes that easy to do.
Buying a Home
Could your spouse or partner make the mortgage payments without you? Would he or she have enough to pay property taxes, make necessary repairs, and keep up the homeowners’ insurance policy and all the other expenses that accompany homeownership? It’s time to take another look at your life insurance.
Other Big Ticket Purchases
If you buy a new car, a boat, an RV, a timeshare, a vacation home or anything that has hefty monthly payments, adjust your life insurance to provide enough money to pay off those debts.
That bundle of joy is going to need a lot of things over the years, including college. Review your life insurance policy to be sure your surviving spouse or partner can meet those needs if you aren’t around to help.
Changes at Work
If your new job or position included a bump in your income, you’ll probably begin to spend to that level. You and your family will grow accustomed to your new lifestyle. Be sure you have enough life insurance so your survivors won’t have to give it up.
Do you have an aging parent or disabled child who depends on you financially? Factor those long-term costs into your life insurance so your dependents are covered in the event of your death.
Widowed or Divorced
Everything changes when you suddenly find yourself single again. Depending on your circumstances, you may no longer need life insurance. Or you may want to keep your policy but designate another beneficiary.
You can get e-life insurance quotes on einsurance.com.