Is It Time to Revise Your Life Insurance Policy?

Buying life insurance is a continuous process. Over time, your demands will vary, so it's critical to periodically review your coverage. Reevaluating your insurance is usually necessary when there is a significant change in your family status, such as getting married or having a child. It's also a good idea to update the death benefit percentages and beneficiary list.

Union

One of the many important life events that should cause you to upgrade your life insurance policy is getting married. A marriage can necessitate increasing the amount of coverage or adding your new husband as a beneficiary to the insurance, according to Investopedia. A lot of policies come with unique features that let you add more coverage or modify beneficiaries without having to provide medical information. It is crucial to notify your insurer of any significant changes in your life and to take advantage of these alternatives when they are offered, as these features typically need to be used within a specific time period following the life event. As part of a routine life insurance review, updating your beneficiaries can help make sure that the people left behind have enough money to pay for living needs such as funeral fees and debt payments. It's a good idea to think about crossing out from your list anyone who is no longer financially dependent on you.

The moment a child is born

A new child is a clue that it might be time to review your life insurance coverage. In the event that the insured parent dies, this can assist spouses in covering costs for everything from daycare to college. You can either purchase new insurance or add a child rider to an existing one, depending on the specifics of the situation. Generally speaking, the latter choice is less expensive than paying for a full burial policy or funeral expenses. Divorce or remarriage is another occurrence that indicates it's time to examine a life insurance policy. Additionally, since the payout from a life insurance policy is intended to give money to loved ones in the event of an early death, it's critical to make sure the beneficiaries specified are accurate and up-to-date. A professional can update your beneficiary information and make sure it is current if you don't have the time to do it yourself.

Changes in employment

It's crucial to assess your life insurance coverage and make a decision on what to do if you change employment. Group life insurance is a popular perk included in benefit packages from businesses. These policies may be "ported" to your new employment or changed to an individual policy, depending on the employer. Well, before your existing coverage expires, you should explore your options. Reviewing your beneficiaries now is a smart idea if any of them are no longer in need of your financial support. Examining your own life insurance policy is also a smart idea, as you might want to think about changing the coverage level or adding more coverage. Prior to canceling or allowing your policy to lapse, it's crucial to know your alternatives for qualifying events, such as changing jobs. To find out more about your options and how to amend your policy, get in touch with your life insurer and set up an appointment.

Retirement

It is a good idea to reassess your life insurance coverage as part of an ongoing financial assessment as you get closer to retirement. This can entail going over the beneficiaries and making sure the policy pays off any debt that would remain after your death. When you get older and may depend more on Social Security and other retirement funds, it may also be time to evaluate whether you should raise or lower your coverage. You can get help from a USAA-licensed financial advisor to reassess your needs for life insurance and decide whether or not you need more riders. Make an appointment with one of our reputable and certified professionals by getting in touch with us right now if you need your life insurance policy reviewed. We are excited to collaborate with you!