When Should You Reassess Your Life Insurance Policy?

life insurance

Life insurance is a necessity that gives you an opportunity to secure your family’s future if the unthinkable happens. While no one wants to think about this type of loss, planning for it now will make things easier down the road. Understanding your family’s needs and what type of life insurance is best, will help you choose the right policy.

Is It Time to Review Your Life Insurance Policy?

Life-changing events and changes to your financial situation can take many forms, each having a different impact on your family’s needs. Some events and situations are unavoidable, while others are thoroughly planned and thought out before they are undertaken. It’s a good idea to review your life insurance periodically, especially when your lifestyle or earning situation has changed. This ensures that the life insurance coverage you have in place is sufficient enough to cover your family’s needs in your absence and will allow them the comfort of living they have become accustomed too.

Life-Changing Events

Many life-changing events may cause you to review your life insurance policy. Getting married and having a child are two of the most significant events that can occur in anyone’s life. The death of a spouse or retiring from a long-term career can also have a dramatic impact on your and your children’s life. Whether your children are small or have grown up and already left the nest, the events that change your life may still impact them. It is up to you to evaluate the level of that impact and review your life insurance policy to reflect those changes. Some events may require no adjustments at all, while others may require you to rethink your entire policy.

Changes in Your Financial Situation

Changes in your financial situation are also factors that should encourage you to review your life insurance policy. Starting a new job, earning a promotion, receiving a large inheritance, purchasing a new home, or starting your own business will all have a direct impact on your financial health and well-being. It is also important to consider the flip-side of this equation in terms of losing a job or getting too deep into debt. Every financial situation, good or bad, will have a direct impact on your family if you are no longer there to provide for them monetarily. Working with a knowledgeable insurance agent is the best way to prepare yourself for any of these situations.

Downsizing

When your children are grown and out on their own, you may no longer need a large life insurance policy to take care of your financial affairs. Individuals who reach retirement age have often worked hard to save their money and pay off existing debts, so they can go into their golden years without any financial worries. Selling a larger home and moving into a smaller one will provide access to the financial means to pay off much of their debt. Reviewing your life insurance policy at this time may also add to your savings, allowing you to live comfortably.

At Udell Family Insurance, every agent has specific training that allows them to work with each client to review their life insurance policies and make sure that all of their needs are met. Every client’s situation is unique and, in many cases, may change several times over just a few years. By reviewing their life insurance policies on a regular basis, our agents can prevent clients from spending too much on coverage they may not need. Contact us today!

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