"The only thing constant in life is change" Someone very wise person once said this, and it still holds true today. Everyone, no matter how similar they may be, has different life insurance needs, and as time goes on those needs can and will change. A newly married person in their 20s is living a very different life then they are living ten years later after three kids and buying a new house. A couple who once worried about the security of their children has a very different set of financial and security goals once their children have completed their educations, are employed and self-sufficient.
People get married, some get divorced, individual income can grow and then become fixed when one retires. Children are born, children leave home and our children eventually have families of their own. The life insurance policy that fit one stage of your life is often a different fit for the next stage in your life. No matter how much we hope that misfortune in all of its permutations will never land on our doorstep, it is always a possibility. Rather than wish it away, smart people prepare for the worst and hope for the best. Regularly reviewing your life insurance policy is not only the responsible thing to do, but offers you peace of mind knowing you are protected in the event life hands you a curve ball.
Your licensed insurance professional can help you review your existing life insurance policy to see if it continues to meet your needs. There are a few things you will want to consider in reviewing your existing coverage
Do I Still Have The Right Amount Of Life Insurance Coverage
The right amount of life insurance helps you and your family plan for the unplanned. When you purchased your first life insurance policy you and your agent probably sat down and went through different scenarios and detailed your needs and your responsibilities to determine how much life insurance would adequately protect your family should something happen to you. You probably selected coverage based upon your spouse and his or her reliance on your income, the age of your children, the amount owed on your home or perhaps a goal of paying for your children’s higher education. How long has it been since you reviewed these things?
Does your life insurance policy fit your current circumstances? Are you still married? Have your children grown up or are they still financially dependent upon you? Is your mortgage paid off or have you had to take another mortgage to weather a difficult financial period? Has your income changed dramatically? Will you be retiring in the coming years? These are all questions that could have a significant impact on your insurance needs. A qualified insurance specialist can ask the right questions and give you the information you need to make sound financial decisions for you and your family.
Do I Need To Update Or Change My Beneficiaries
No one wants to think about it but divorce is a fact of life for many of us. Many divorced spouses opt to keep their ex as a beneficiary in order to insure their children are provided for but others remarry and in the hectic schedule of everyday life, they can forget to make life insurance policy updates that protect their current partners. If your children are young, you may typically assign your spouse as beneficiary but as children grow, you may want to make them beneficiaries as well.
No comments:
Post a Comment