Life insurance provides financial compensation to your loved ones after your death. Your policy is not like a slow cooker where you set the timer and walk away, though. You’ll need to reevaluate your policy when six life events occur.
When you get married, your spouse depends on your income and contributions to the home. Take a look at your insurance policy. Is the death benefit adequate for your life partner in case something happens to you? Update your policy or purchase a secondary policy, and make your spouse your primary beneficiary of the benefits. You can also purchase a life insurance policy for your spouse as you give him or her peace of mind.
Having a Baby or Become a Primary Caregiver:
Adding a baby to the family, adopting a child or beginning care for an aging parent, you now have another dependent that relies on you for support. Life insurance benefits help to pay for expenses associated with dependent care. In addition to ensuring your policy provides adequate financial assistance; consider making your dependent a secondary or contingent beneficiary on your policy.
Buying or Selling a House:
Mortgage payments are probably a significant portion of your monthly budget. Could your surviving spouse pay the mortgage and other household expenses without your income? Make sure your life insurance policy covers the mortgage repayment if you die before the house is paid off. If you downsize or repay the mortgage, consider cancelling the policy if you no longer need it.
Incurring or Paying Off Significant Debt :
Student loans, credit card bills and other significant debts put a damper on your monthly budget. Repaying those expenses could also affect your survivors. Ensure your life insurance policy covers any significant debt repayment as you care for the people you love. Once the debt is repaid, you can decide if you wish to keep or cancel the policy.
Experiencing Income Changes:
Lose a job, switch jobs or get a large raise, and you’ll also want to check your life insurance policy. Make sure it provides adequate resources to replace your income. Ideally, your policy should be at least five-to-ten-times your annual salary.
Beginning to Plan for Retirement:
As you are beginning to plan for your future retirement, remember to update your life insurance policy. The benefits can assist your surviving spouse in maintaining his or her current lifestyle, traveling the world or covering nursing and medical care. With it, your spouse has peace of mind and financial security even during the retirement years.
It looks like a lot to think about. But, life insurance provides peace of mind. Tracy- Driscoll’s licenses and expert agents are ready to help you regularly evaluate your policy to ensure it meets your needs.
Don’t wait to protect your family, give us a call today at 860-589-3434 to speak with a professional, and learn more about the advantages of having a life insurance policy. Tracy-Driscoll is dedicated to create a life insurance policy that works for you.