Life insurance protects your family from experiencing financial hardships if you pass away while they are still relying on your income. For many families, having a solid life insurance policy in place means your family doesn’t have to worry about losing their way of life if a disaster strikes. It’s important to have your life insurance policy reviewed occasionally to ensure you always have the right amount of coverage.
When Your Financial Obligations Change
A good time to review your existing life insurance policy is when your financial obligations change. This can mean the loss of your job. It can also mean a major promotion or the purchase of a new home. Understanding how your budget changes will allow you to plan how your life insurance policy should also change. Financial obligations can also mean that your business may not be functioning the same without you to guide it. These decisions can be hard for a family to deal with.
Children Move In/Out
Starting a family or adding another child are also good times for a policy review. The same is true when your children grow up and start to move out of your home and into one of their own. Empty nesters can often save a lot of money if they review their life insurance policy and start living life for themselves. Many people still choose to carry larger policies so that each child or grandchild gets a small inheritance.
When you get married, you not only gain a partner, but you also get extra liabilities. This is true when it comes to any financial debt as well as how much money your partner brings into the household. Once you have tied the knot, call your insurance agent and ask for a review of your life insurance policy. By reviewing your policy after you get married, you can include your spouse and make determinations for their needs as well.
Ready to Retire
Another good time to request a review is if you have made the decision to retire. While most people have the financial means to retire comfortably, others may not be so lucky. Reviewing your life insurance policy may give you a good idea of what you may need to be doing to secure your spouse’s future if something were to happen to you.
If you are looking for a quality life insurance plan and are not sure about the pros and cons or more. Contact the experts at The Schwab Agency for a policy review and to have all the answers that you are searching for.