When Should You Increase Your Life Insurance Coverage? (5 Tell-Tale Signs)

Apr 7, 2021 1 min read

Often, a need to add coverage comes from key life events. If any of these five things have happened to you, contact your Farm Bureau agent to discuss increasing your life insurance coverage.

1. You’ve Grown Your Family

When you get married, you make a commitment to care for each other. That includes individual life insurance policies that can help care for a spouse should someone pass away.

Adding a child to the family is a joyous celebration, but it’s also expensive. According to the USDA, raising a child costs over $225,000. An appropriately sized life insurance policy can help ensure that your partner has a safety net and your children will be supported. 

2. You’ve Increased Your Financial Commitments

Having the appropriate life insurance coverage gives you peace of mind that your financial commitments wouldn’t overwhelm your family if you were to pass away. If you’ve recently added to your financial responsibilities, such as starting a business, funding the care for an aging relative (either at home or a facility) or purchasing a new home, you should increase your coverage.

3. Your Family’s Employment Status Has Changed

A promotion or significant raise not only signifies the increased value you bring to your employer, but also to your family. When your paycheck increases, you should change your coverage to take into account your higher income.

You should also increase your coverage if your spouse is no longer working outside the home. Paycheck replacement is an important reason many people have life insurance; if yours are the only earnings, a higher level of coverage would help alleviate the stress of your partner immediately finding a way to support your family.

4. Your Long-term Needs Have Changed

Life insurance is about caring for your loved ones even after you pass away. If someone you care for has been diagnosed with a chronic disease that requires additional care over their lifespan or has suffered a life-changing injury, an increase in your life insurance coverage will help provide them with the ongoing support they need.

5. You’re Thinking About Estate Planning

An estate plan has many facets and there are a variety of ways to transfer wealth, but don’t discount life insurance as a way to leave an inheritance. This is especially helpful if some of your heirs will be inheriting a farm or business; you can designate other heirs as a life insurance beneficiary to equalize the inheritances.


Talk to your Farm Bureau agent if you have experienced any of these life changes or if you think your life insurance coverage doesn’t meet your needs. Overall, increasing your coverage can be an easy way to achieve the peace of mind that comes from knowing your family is protected.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.