When to review your life insurance coverage
If it's been a while since you've done a life insurance policy review, now may be a good time for a life insurance checkup.
Performing an annual review of your life insurance can help you keep track of your coverage over time and serve as a reminder to check and see if it’s still meeting your needs. In addition to that, whenever there’s a life event that significantly impacts your family or your finances, there’s a good chance it may impact your life insurance needs as well.
Consider reviewing your life insurance coverage during these key life moments:
Adjusting your income
Have you found a better paying job? Did you receive a promotion? Have you decided to go part-time instead of full-time? A change to your income may also result in a change for your life insurance needs.
Getting married
Sharing a life together typically means more than just sharing your living quarters, it can also mean sharing your finances as well. Whether just one of you are working or both of you are, one way to help protect your spouse’s finances, should you pass, is by having life insurance that can help pay for immediate needs, such as funeral expenses, and ongoing items, like a mortgage or car payment.
Having/adopting a child
Each time a child is added to your family, your household will generally experience a financial impact and may count on you to help provide for their needs. So whenever there’s a new addition to your family, consider reviewing your life insurance coverage. Life insurance can help continue paying for ongoing expenses, such as daycare costs, and future expenses, like helping pay for a child’s education.
Buying a home
New homes typically come with new mortgages. So if you’re buying a new home, consider whether your current life insurance coverage would be able to provide enough financial assistance for a surviving spouse or partner to either cover the monthly mortgage payments or possibly pay off the mortgage entirely.
Opening a business
Opening a business can affect your finances. As such, the passing of you or a business partner can have a considerable impact on the business. One way to help prepare for business continuity and lessen the impact of loss is through key employee life insurance.
Getting divorced
Consider reviewing your life insurance when getting divorced as you may find that your needs have changed, as well as your beneficiaries. If children are involved, you may want to consider how life insurance can assist with education expenses and child support payments if you were to pass away.
Coming into money
Perhaps you just found out that a long-lost relative passed away and left you a rather substantial amount of money. Or maybe you just won the lottery. Whatever the case may be, coming into money can significantly change your finances as well as your lifestyle which can also be a reason to review your life insurance coverage.
Providing care for a loved one
Providing care for a loved one, such as an aging parent or a child with special needs, often includes providing financial support for them as well. If you have a loved one who depends on you financially, whether they live in your home or live in an assisted living facility, consider revising your life insurance coverage to help cover the costs of replacing your support in the event of your death.
While there are many events throughout our lives that can trigger a life insurance review, our State Farm® agents are available to help.
You can get a life insurance quote now, or give us a few details and a State Farm agent will reach out to you.
