When you purchase a life insurance policy, you’re taking an important step to make sure your loved ones are financially secure if something were to happen to you. As the years go by, however, you may find that the policy you purchased a while back may not provide the right amount of coverage you currently need. While you should take the time to review your life insurance policy each year, there are various life changes that may prompt you to adjust your life insurance coverage.
Make Sure Your Family Is Taken Care of With Life Insurance
Life insurance, especially term life insurance, is a smart and inexpensive way to financially protect those who are dependent on your income. When deciding how much coverage you need, it’s important to consider how much you can afford, who depends on your financial support and what your immediate and future financial needs are.
When to Adjust Your Life Insurance Policy to Keep You Covered
You Got Married
There are a lot of financial decisions to make when you get married, life insurance being one of them. Your life insurance coverage should be able to replace future lost income and any debts that would potentially burden your spouse.
You Had Kids
As a parent, it’s important to have enough life insurance coverage for the 18 years your child is a minor. You’ll want to make sure you have enough to cover the cost of bills that directly affect your child, as well as college expenses, in the event that one parent’s income is lost.
You Started a Business
If your loved ones depend on your business’ income to survive, or you took out a business loan backed by your family’s assets, you’ll want to make sure you have sufficient life insurance coverage. A personal life insurance policy can help pay off any business debt in addition to covering living expenses. Life insurance policies can also be used in a buy-sell agreement, allowing the remaining business partners to easily buy out your share if something were to happen to you.
After retiring, your need for coverage may not be as substantial as before, but there are a few benefits that can come from retaining life insurance coverage. A permanent life insurance policy that earns cash value over time can be used to supplement your retirement income or help cover the tax bill that can come with passing on assets to your children or grandchildren.
When life happens, SelectQuote can make sure you’re covered.
There’s no shortage of options when it comes to life insurance. At SelectQuote, we make understanding your life insurance options easy. Whether you’re looking to adjust your life insurance policy or shop for a new one, in just minutes we can help you find the right amount of coverage with the right carrier at the right price for you.