Do you have enough life insurance coverage? In many cases, there’s a major gap between the amount of life insurance coverage you need and the amount you have.
As you reach different stages in your life, your life insurance needs will change. If you fail to update your insurance policy as your life changes, you could find yourself grossly under-insured.
Reason #1: You own a home
If you’re planning on purchasing a home or refinancing your mortgage, protect your investment with life insurance. If you’re unsure about purchasing insurance, ask yourself this question: could your family make mortgage payments without you?
Reason #2: You’re in debt
Your life insurance may be enough to cover your mortgage, but what about other debts? In the event of your demise, term life insurance could be used to pay personal loans, credit card bills, student loans and any other day to day expenses.
Reason #3: Marriage
If you have a spouse, chances are you are sharing the financial responsibility. Life insurance can serve as income replacement to help your spouse pay the bills and preserve the same standard of living.
Reason #4: A new baby
Having a baby is a wonderful time for parents, but it can place an incredible strain on a family’s finances. Raising a child is very expensive. If one income is lost, could the surviving parent maintain your child’s current standard of living? Would there be adequate funds to provide your child with the education you want to provide?
Reason #5: You buy a bigger home
A bigger home usually means a larger mortgage. Make sure you increase your life insurance coverage.
Reason #6: A new job
Even if your previous employer offered life insurance benefits, you likely had a separate life insurance policy. Your new employer may have benefits, but how much? Your employer’s coverage may not be sufficient to cover your family’s financial needs. Starting a new job is a good time to evaluate your life insurance needs.
Reason #7: You become widowed or divorced
If you’re a widow or divorcee, you’ll likely need to re-examine your life insurance needs. You may have lost life insurance coverage you previously had with your spouse. Make sure you update your coverage if you’re divorced or widowed.