When was the last time you reviewed your life insurance policy? Many people do not think twice about it. They purchase a policy, set it aside, and don’t think about it again. This can be a big mistake.
If you have not taken the time to inspect your policy in the last year, do so now. You may find you need a different type of life insurance plan. You may need to change the amount of coverage you have.
Reviewing your policy each year is good practice. Here are a few other times you need to take a closer look at it.
#1: You’re buying a home
Investing in a home is a large commitment and one that comes with financial risk. If something were to happen to you, could your family continue to make payments on the home?
Life insurance may help to cover the remaining mortgage if you die prior to repaying the loan. When entering into a mortgage, ensure your life insurance coverage is high enough to cover the balance. You may also want to ensure the value is high enough to cover maintaining the home for several years.
#2: You’re getting married
Once you get married, many things in your life will change. Even if both spouses work, you need to consider life insurance plans carefully.
Should you list your new spouse as a beneficiary on the policy? This means he or she will be able to obtain the funds from the plan to use as needed. And, adding a second person may also mean expanding your coverage so it is more comprehensive.
#3: You’re having a child
The birth of a child means adding a new beneficiary, potentially, to your life insurance plan. It also may require a bit of careful thinking and planning about your future.
The proceeds from a life insurance plan can help to cover that child’s needs long term. It can also help to pay for college or other needs if you would like to leave behind a portion of it within a trust.
Your life, dependents and debt change. It's best to update your life insurance policy when a change happens. Make it a habit to scan over your document and to request a new quote for a different policy at least one time a year.
Pfenninger, Claxton, & Estelle Insurance Group is here to make your search for life insurance simple. Call us today at (317) 398-9797 for a Muncie IN life insurance quote.