When Should You Update Your Life Insurance Policy? For most people who carry life insurance policies, the peace of mind that can come from making sure that loved ones left behind are provided for financially can be invaluable. After all, that’s usually why they have the policy in the first place. Life insurance shouldn’t be a one and done thing though. There are some instances in which you may find it beneficial to update your policy.
You Take on Debt
Virtually everyone will take on some degree of debt. There are so many different things people go into debt for that it’s almost a guarantee. The whole point of carrying life insurance is to make sure that any financial suffering your loved ones experience after your passing is minimized. If you take on a lot of debt, the financial burden you would leave behind is greater, which means you may need to reevaluate how much your policy is for.
You Work in a Risk Industry
The industry you work in can also impact how much life insurance you need. If you find yourself working in a high-risk industry, you may want to take a closer look at your life insurance policy and make sure you’re satisfied with it. Of course, you should also take all reasonable precautions to make sure you’re safe and remain alive and uninjured. Falls are the most common cause of worker fatalities. Make sure you’re wearing proper footwear for your work conditions and exercise care when working with or around heights.
Your Family Situation Changes
A change in your family dynamics is another good reason to reevaluate your life insurance policy. Marriage, the birth of a child, or even divorce can necessitate a change to your policy. As you grow your family, your expenses will likely increase, which could mean that it makes sense to increase the value of your policy. It could also mean reevaluating who you have listed as your beneficiary. On the other hand, getting divorced could potentially mean you could decrease the death benefit, though what you’re allowed to do may depend on the divorce decree. Check with your attorney before making any changes just to be safe.
Certain life circumstances may make it a good idea to reevaluate your life insurance policy. Taking on debt, working in a high-risk industry, or a change in familial situations are just a few of such circumstances. Even if you aren’t experiencing these specific circumstances, commit to reevaluating your policy regularly to make sure you have the coverage that is right for you.
You can rest assured that you will get the coverage you need with our life insurance options. Request a quote from us today!