When You Should Review and Update Your Life Insurance
Life changes that should lead to an insurance review.
Your life insurance is meant to protect your loved ones in the event of your unexpected death. However, simply having a policy is not enough; you also need to regularly review and update your coverage as well. Here are some of the life changes that should prompt you to review and update your life insurance.
- You Have a Baby on the Way
If you are welcoming a new addition to your family in the near future, then you need to update your life insurance policy to address this change. In addition to adding your child as a beneficiary, you should also increase your coverage to help your spouse pay for child-rearing costs and future educational expenses should you die unexpectedly.
- You Buy a New Home
If you have finally taken the huge step of purchasing a home, your financial obligations will increase. This is because you now have to keep up with regular mortgage payments in order to keep ownership of the home. Once you close on the home, you need to increase your life insurance coverage to ensure that your benefit is enough to help your spouse keep up with mortgage payments or enough to pay off your mortgage completely.
- Your Job Status Has Changed
If you have gotten a promotion or raise at work, then you need to increase your life insurance coverage. This is because the more money you make, the better quality of life you and your family will enjoy. If you were to die without upgrading your coverage, then your death benefit may not be enough to support the lifestyle that your loved ones are accustomed to. So, all salary increases should be met with an increase in your life insurance coverage.
These are some of the situations in which you need to review and update your life insurance policy. Do you have additional questions about your life insurance? If so, then contact the experts at Club Agency Insurance Brokerage in Garden City, New York. We are ready to get you covered today.