It’s officially 2021! With one year ending and another one beginning, you may be reminiscing about the recent changes you have experienced and considering what additional changes are yet to come, like growing your family, buying a home, or changing your career! During this time of new beginnings, make sure to assess whether your current life insurance policy meets your needs or if it’s time for a life insurance review.
Growing Your Family
Did you know that as your family grows, your coverage should, too? Life events like getting married or having a baby can drastically change the amount of coverage a family needs. Whereas a single person with no dependents and minimal debt may only need a small policy that covers final expenses and funeral costs, someone with a spouse and three kids may need enough coverage to provide for their partner and send each child to college, should something happen to them. Any time your family grows or changes, it is a smart idea to review your current policy and decide if you need to take out additional coverage.
Buying a Home
Taking out a mortgage is serious business, and buying a home is often the most expensive purchase an individual or family will make. When you invest in something as important as your home, it is not only important to protect it with casualty insurance but to protect your family’s ability to keep it if something were to happen to you. If you finance your new home, make sure that your life insurance policy is large enough to alleviate some financial burden for your family in case of an emergency.
Changing Your Career/Income
Life insurance, in its simplest forms, provides coverage for final expenses and replaces a breadwinner’s income in the event that the policyholder passes away. As you climb the corporate ladder or experience a change in your annual income, you will likely need to adjust your budget to accommodate for the sudden increase or decrease in pay. When you experience a change in your income, it is important to reevaluate your current life insurance policy to ensure that your family would continue to receive enough money to live comfortably for several years.
Life Insurance Questions?
We hope this information on when to complete a life insurance review is helpful.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633.
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