5 Reasons You Need to Increase Your Life Insurance Cover
People buy life insurance to protect their families from financial devastation if the primary breadwinner dies unexpectedly. Before a policy is purchased, try to determine what amount of money is needed in order to cover your day-to-day living expenses. Discussing your family’s needs with a knowledgeable insurance agent is the best way to ensure that they will have everything they need during a very difficult time. An unexpected death can leave a family with very few resources. Having the right life insurance policy is extremely important.
Here are 5 reasons why you need to increase your life insurance coverage:
- Pay Off Your Mortgage
Purchasing a home is a long-term investment. Most people plan on living in the family home for many years. It is important when determining the amount of life insurance to be purchased that you figure in enough money to pay off your home’s mortgage. This guarantees that your family can keep the home they expected to grow and thrive in. Paying off your mortgage frees up other money that can be used to pay other living expenses. It also gives you the peace of mind you need knowing your family’s home is secured.
- Protect Your Partner
One of the most common occasions for increasing your life insurance is if you get married. Purchasing additional life insurance ensures that your spouse or partner has the means to live the lifestyle the two of you have established for yourselves. It gives them the funds they need to pay off any new debts that the two of you agreed upon at the start of your relationship. Protecting your partner and giving them an opportunity to regain their financial security is a must.
- Take Care of Your Children
Taking care of your children is your priority when you are alive. It should be your priority when determining how much life insurance you need to care for them if the unthinkable happens. If a new child enters the family, the amount of life insurance you purchase should increase to account for the cost of their care and upbringing. Your insurance agent can help you include the cost of living and any other factors that should be considered when purchasing life insurance to protect your family.
- Cover Your Debts
Another reason to increase the amount of your life insurance is to cover any existing debts. Besides paying off your mortgage, you will need to make sure there is enough money to cover any medical bills, credit card debts, auto loans, or any other type of debt that will eventually be covered by your estate. As the amount of your debt increases, so should the payout amount of your life insurance policy!
- Your Financial Situation Changes
Changes in your financial situation can take many forms. Maybe you got a higher-paying job, you’ve gotten married, or purchased a new home or vehicle. A change in your financial situation can also take the form of an inheritance. An increase in your financial holdings is great if you have the means to keep it going.
Purchasing additional life insurance is the best way to maintain your financial situation and ensure your family is properly cared for. Are you looking for the perfect life insurance policy? Contact the experts at Club Agency Insurance Brokerage in Garden City, New York, today.We will assist you in evaluating your policy and making adjustments that account for any changes in your financial situation. We have the answers you are looking for and will make sure you have the financial security you need.