When Should You Update Your Life Insurance?
Life happens. Does that life insurance policy you bought a while back still fit? When your life changes, your insurance might need to as well. In fact, reviewing your policy every year or two can ensure peace of mind that you’re up-to-date.
When reviewing your life insurance policy, asses the finer points such as:
- Amount of benefit
- When term insurance will end
- Cash value
- Loan value
Why Should You Update Your Life Insurance Policy
Each of these require a closer look and, if appropriate, they should be updated. There are several reasons you might want to update life insurance policy.
1. You have children.
If you’ve had kids since you purchased the policy you probably want to add them as beneficiaries.
2. You divorce and/or remarry.
Don’t forget to remove your ex as a beneficiary.
3. A beneficiary dies.
When a beneficiary dies, remove them from the policy.
4. You could use a financial boost.
If you have a universal or whole life policy, you can borrow from it, or use some of the cash value to make or bring down your monthly premium.
5. Your term policy is ending in the near future.
Stay on top of the termination date because you might be able convert your policy to whole life insurance.
6. You want to ensure you’ll be taken care of.
It could be you want to add a long-term care rider to your policy to make sure you’re taken care of should you need it.
7. Your financial goals have changed.
You might be in a better financial position than you were when you purchased your policy and can now afford to up the benefit amount.
It’s a good idea to make a good life insurance review on a yearly basis and update life insurance with your provider. To learn more about life insurance see Life Insurance: What is It? Still have questions? Call (844) 524-6503 for assistance.