When to re-evaluate your life insurance needs

When it comes to protecting what you love, life insurance can help. Depending on your stage of life, that may mean different things. Here are some significant life events that might cause you to re-evaluate how much life insurance you need.


Getting your first job

You might not have paid attention to life insurance before starting your first job; however, when you begin work and review your benefits options, check to see if your employer offers you life insurance coverage. Life insurance is especially important if you have debt to pay, including student loans, credit card bills, and car payments. Examine your employer’s group policy carefully to make sure the amount is enough to cover your financial obligations. Depending on how much debt you have, you may want to consider purchasing additional coverage.

Getting married

Tying the knot is a perfect time to review not only your own life insurance coverage but also your spouse's or domestic partner’s coverage too, especially if your job is the main source of income. Verify whether your employer’s group policy allows you to make new elections, change your coverage, or purchase additional coverage for your spouse.  

Buying a house

Buying a house is one of the biggest purchases you may make over your lifetime and is a tremendous accomplishment. When you make the decision to invest your savings into a new home, you should consider whether your current life insurance coverage would cover your outstanding mortgage. If you were to pass away, having the right life insurance coverage can provide the financial support that would let your family pay off the mortgage.

Having a child

Reviewing your life insurance is important when you become a parent, as it is one way you can ensure that your child is financially protected if you can’t be there. Consider the ways in which your children depend on you for financial support—daycare costs, tuition payments, school clothing, and maybe even paying for a wedding someday. Your life insurance can also allow you to leave a legacy behind for your family.

Changing jobs

When you change jobs or even careers, you should take the time to review your coverage. Your ability to earn an income is one of your biggest assets. Life insurance is one way you can replace your current earnings and give your loved ones one less thing to worry about. To figure out how much you need, think about your anticipated income for the next five years. If you expect your income to increase as you advance your career, make sure your life insurance coverage keeps up.   

 When thinking about life insurance, consider how you want to protect yourself, your future, and your family’s future. With the right insurance policies, you can make sure that you and your family members can continue to maintain the lifestyle you love.

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