If you’re like most, your world can change very quickly. As you age, major life events will take place, and you’ll want to be sure you have the right life insurance to match. Take a look at these five huge life events that may warrant changes to your life insurance coverage.
Your life insurance is an asset, and a way to financially protect the people you love. Whether you recently got married or you’re going through a divorce, this is a big life change and prompts changes to your life insurance policy. Review your beneficiaries and ensure your information is up-to-date and align with your current wishes.
Coverage needs change over time. From paying for daycare to saving for their college education, the cost of providing for kids can be very high and may require more coverage. Your life insurance could be used to help fund a college education. However, if your child is now an adult and financially independent, you may be able to reduce your coverage.
Buying a home is an exciting time. When you purchase a home, you will also need homeowners insurance. But, your life insurance can help you guarantee that your loved ones can maintain the mortgage and keep your home if something were to happen to you. Your life insurance allows you to provide financially for your loved ones after you’re gone.
The life insurance policy you opened five years ago may not cover your new home’s bigger price tag and your coverage may need increased. On the reverse side, if you’ve recently paid off a mortgage your obligations will be much lower compared to when you purchased your policy. In this instance you may not need the same level of coverage today.
Congrats on the new job – hopefully that comes with a higher salary and better benefits! If your new job helps you afford an upgrade to your current lifestyle because of your higher earnings, you may want to reevaluate your coverage.
You have been working your entire life in order to afford retirement. Do you plan to sit back and relax or travel and see the sights? Do you still need your life insurance if you are no longer working? There are valid reasons you may want to keep your coverage, even if you aren’t clocking in from 9-5 every day.
We Can Help!
Our life insurance calculator can help you determine how much coverage you may currently need. Additionally your Farm Bureau insurance agent can sit down with you to go over all changes and update your coverage. Don’t have a Farm Bureau agent? Use our find an agent feature to connect with an agent near you.
Insurance Information Institute
National Association of Insurance Commissioners