What to think about when increasing your life insurance coverage after a raise.
If you’ve just gotten a raise at work, then congratulations! You now have the ability to offer your family a better quality of life. However, as your standard of living increases, so does your family’s expectations. To ensure that your loved ones are able to maintain their quality of life, even in the event of your unexpected death, you need to increase your life insurance coverage. Here’s what you need to consider when increasing your life insurance coverage after a raise.
How Much Should You Increase Your Coverage?
When come it comes time to increase your life insurance coverage, you should consider the following factors:
- Your total income- Don’t raise your coverage on a whim. Make sure your coverage increase is proportional to your salary increase.
- Where you live- Consider your cost of living when increasing your coverage so your family can continue to cover routine costs like the home mortgage, groceries, gas, and so on.
- How much money your family needs to live- While tedious, you should add up your family’s everyday expenses. You need to make sure that your life insurance coverage is enough to take care of these costs.
How Can I Increase My Coverage?
When it comes to increasing your life insurance coverage, you have some options. First, you can speak to your agent and have them adjust your policy to meet your new coverage requirements. This is the easier option because it does not require you to redo your health evaluation or jump through annoying hoops.
In some cases, your existing life insurance policy cannot be increased. This means that your other option for increasing your coverage is securing a completely new life insurance policy. This process is more difficult as it requires you to shop for a new policy, submit an application, and complete another medical examination. This option is also likely to be more expensive. So, not only do you need to put in more effort, but you will you have to pay for more coverage.
This is what you need to know about increasing your life insurance coverage after a raise. Do you have additional questions about your life insurance? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your coverage needs today.