When should you reevaluate your life insurance policy? Have you looked at your policy, needs and coverage since you purchased your policy? If not, now is definitely a good time to review it with the team at Low Cost Life Insurance!
Aside from a general policy check-up, there are life events that cause a need for you to update your life insurance policy.
When you first purchase your life insurance policy, you purchase it for your specific needs at that time. Meaning, if you are single and renting an apartment, your needs are different than if you are married with three children and own a home. The life changes that happen in between these things are usually good times to update your policy.
And, if you are a client of Low Cost Life Insurance, we conduct a review of your life insurance coverage each year.
Reasons people update their policies may include:
Obtaining a Mortgage
Many people purchase enough life insurance to cover their mortgage. At some point, your mortgage payments may change due to refinancing your home or purchasing a larger property, or any number of reasons. If you bought a 25-year policy, but have a 35-year mortgage, your policy will end before your home is paid off.
Growing Your Family
One of the most common reasons people review and update their life insurance policies is needing to insure their expanding family. Insurance to only cover your mortgage is enough before you have children, but you have more than yourself and your future to protect once you have a child.
Changing Your Policy’s Beneficiaries
Setting up your beneficiary according to your wishes is very important for you to do. Ensuring you choose the right beneficiary, or beneficiaries, means you and your family have peace of mind knowing where your money will go in the event of your death. Many people choose a spouse, their children or other family members or a trust.
Needing More—or Less—From Your Policy
If you review your policy and find that you need to change the death benefit amount (increase or decrease) or extend the time frame covered, you can talk to your insurer about changing your coverage. Not all policies can be amended later on, though, so this is something to work out with your insurer at the time of purchasing your policy.
Reach Out to Low Cost Life Insurance
Stuart Woodbury and the team at Low Cost Life Insurance are here to help you with your life insurance policy through every phase of your life. Our core goal is to offer the very best in customer service for all of our clients. We take the responsibility of covering you and your family very seriously and are here to help you for years to come. Reach out to our team today to receive a free, personalized quote.