Life can change at the drop of a hat. Whether it’s meeting that special someone and tying the knot or finally getting that big promotion at work, it’s important to consider adjusting your financial plan accordingly. Your plan should include life insurance.
Here are five moments in life where you should want to re-evaluate your needs:
Once you get married, your financial situation will undoubtedly change. Whether it’s having a dual income, or taking on more debt, it’s important to make sure your life insurance policy reflects your new circumstances. You may also want to consider updating your beneficiary to your new spouse.
2. Buying a home
Purchasing a home is likely one of the most expensive purchases you will ever make. It’s also where you hang your hat at night and spend time with loved ones, making it that much more important to protect. Make sure you have a life insurance policy that will help you pay for housing expenses, so that if the unexpected happens, and you were to pass away, your family would not have to be uprooted.
3. Having children
Expanding your family is an exciting time in life, and with this new bundle of joy comes many new responsibilities, some of which are financial. A review of your life insurance policy is especially important once you have children. If you were to pass away, you want to make sure they are set financially and don’t have to worry about their financial future.
Unfortunately, divorce can happen, and it’s a big life change that requires a good look at your finances including your life insurance policy. You may want to increase or decrease the death benefit amount or possibly change the beneficiary depending upon the terms of the divorce.
5. New career or business
A new career, business or big promotion can mean a change in your financial situation. With this change it is important to reassess your coverage needs and make sure your current policy is sufficient and covers your new circumstances.
Even if you haven’t experienced these life events, life insurance is still an important financial tool. A big life change doesn’t have to be the only reason to review your policy. It is recommended that you review your policy at least annually to ensure it continues to fit your needs.