Originally Posted On: https://www.iquanti.com/
Whether you’ve had life insurance for years or you’re on the hunt for the best term life insurance for the first time, you should review your life insurance needs at the end of each year. If your life circumstances have changed during the year, it’s best to update your policy as quickly as possible so that you’re adequately insured.
As you continue to read below, we’ll take a closer look at why it’s best to review the details of your life insurance policy each year.
Why Your Life Insurance Policy Should Be Reviewed Annually
Reviewing your insurance policy every year is the perfect opportunity to take a closer look at all the events that have occurred over the previous year. If you’ve recently had a child or married someone, your life insurance coverage should reflect your current situation.
Life Changes to Take into Account
Numerous life changes might require you to alter your life insurance policy and the coverage amount, which includes everything from marriage to an incoming retirement.
Marriage
When you’re single, you might view life insurance as an unnecessary monthly expense. Once you’re married, however, your spouse may depend on the income you bring in. If something were to happen to you, your spouse would likely need life insurance benefits to pay their expenses and any remaining debts you had.
The total coverage you require depends on your current income level, financial goals, and assets and debts. If you have life insurance from your employer, your level of coverage might not be high enough. Purchasing coverage via a private insurer could help you bridge the gap.
Retirement
If you’re getting ready to retire soon, you should reassess your need for insurance. Unless you’ve already paid off all debts you owe, you might not have the best financial picture as retirement nears.
Whether you’re still paying off student loan bills or mortgage payments, it’s highly recommended that you look into life insurance protection. The right amount of coverage allows you to provide for your family even if your estate isn’t as large as you’d like it to be. It also provides you with an opportunity to transfer wealth to your beneficiaries.
Becoming a Parent
Once you become a parent, purchasing a life insurance policy allows you to enhance the financial security that you and your family have. The proceeds from your policy could help your family continue paying for a mortgage, car payments, or college tuition in the future.
If you already hold a life insurance policy, now might be a good time to look at your policy limits to determine if they should be raised.
Bottom Line
Reviewing your life insurance needs annually makes it more likely that your family will be provided for in the event of an unexpected death. Life changes like getting married or becoming a parent are good reasons to assess your needs.
