As we get older, circumstances in our lives change. A life insurance policy that was once right for you may no longer work. Sometimes, it’s a good idea to rethink your policy and consider increasing your coverage. To help you figure out if it’s a good time to rethink your life insurance policy, we’ve made a list of 6 reasons to increase your life insurance coverage.
1. Your lifestyle has changed.
If your lifestyle has changed since you bought your original life insurance policy, you might need to think about increasing your life insurance coverage. This applies to if you or a family member gets sick, or if you’ve paid off debt. Also, if you’ve recently started doing more high-risk activities, like rock climbing or skydiving, then it’s worth it to think about changing your policy.
2. You had a child.
Adding a new member to the family is exciting, but it’s important to recognize that it also adds more expenses. Your partner may not be able to cover all those expenses if you’re no longer around to help, so that’s why you might need to increase your life insurance coverage. This is especially true if you’re the main source of income in your household. Life insurance policies can also be used for things like college funds and future wedding expenses. Every time you welcome another child into your family, you should think about updating your life insurance policy.
3. You bought a house.
One of the main reasons people decide to get life insurance is to cover mortgage debt. Another reason is to pay for home expenses. That’s why buying a new home is a good reason to rethink your life insurance coverage. You’ll want to make sure that you have enough coverage to at least make monthly payments on your mortgage once you’re no longer around.
4. Your partner no longer has a job.
Any time something happens that impacts your income, you might want to rethink your life insurance policy. This includes if your partner or spouse no longer has a job, and you become the only source of income. You’re going to want to make sure your life insurance policy has enough coverage to take care of all your financial needs if one of you passes away.
5. Your term life policy is ending.
If you have a term life policy and it’s reaching its end, you might consider changing to a permanent life policy. Some reasons for this might be that you want coverage for life, or that you’re interested in building cash value. As your term life policy is coming to an end, it’s important to assess your family’s needs and decide if the life insurance policy you have still meets them.
6. You got a raise at work.
Like we mentioned before, any big change in your income requires you to rethink your life insurance coverage. This includes a positive change like a raise at work! You may have originally bought a policy with less coverage because that’s all you could afford at the time. However, once your family gets used to the way you live on a higher income, you’re going to want to increase your coverage so they can still live that way when you’re no longer around.
Get Life Insurance Coverage
At USA Life Team, we build personalized plans that match both your needs and your budget. When circumstances in your life change, we’ll help you get the coverage you need to protect your loved ones once you pass. To get started, request an online life insurance quote or give us a call! Our life insurance agents are happy to help.