When To Review Your Life Insurance
With changes in our life situations, our insurance needs also keep fluctuating. Purchasing an insurance policy once may not necessarily suffice the ever evolving insurance needs. Here comes the importance of reviewing your life insurance cover every time there is a major change in one’s life. Know what those changes are in the following points:
Newly Married -
You might have purchased an insurance policy earlier in life when you had no dependents. But once married, you start sharing your life with your spouse. If your spouse depends on your income, you need to review and explore ways of maximizing the insurance cover purchased earlier as that might be enough for both of you.
Became A Parent
After you become a parent, life insurance policy can help your family meet current and future expenses in case of an untoward event (in this case premature death). As your children would completely be dependent on you until they start earning, it becomes critical that you re-evaluate the cover amount.
When You Take On Higher Liabilities -
If you were to pass untimely, the repayment burden of the liabilities that you had taken earlier in life falls on your family.
Child’s Growing Years -
This phase of life brings increased responsibilities like your children’s’ education, their tuition fees etc. Re-adjustment in your insurance cover may help you determine the right amount, ensuring that your spouse is not burdened with such financial crisis in your absence.
Change of Career -
With change in career or job profile, your income levels change as well. A rise in your income levels up your and your family’s lifestyle. Once used to a lifestyle, your family may find it difficult to cut down their expenses when you are not around anymore.
When Retired -
If you are already retired, you may be able to discontinue your life insurance policies if you have a regular source of income in the form of your investments. If you are one of them who still have debts to repay but do not have a reliable income post-retirement, You should re-evaluate your policies to meet such expenses.
Of course none of you wants to be underinsured even after purchasing a life insurance policy or paying for more than you actually need. The above factors hopefully may help you identify the major changes in life calling out for an appropriate review of your policies.
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