As life goes on, it changes. And some of those changes mean you need more life insurance coverage. If your life has undergone some changes in the years since you first bought your life insurance policy, it may be time to see if you have enough coverage. Here are 6 signs you need to add more to your life insurance policy.
- You got married
- You are now a homeowner
- You had a kid
- You took out student loans
- You got a big pay raise
- You’re spending more per month
Getting married is a huge life change. It means that you’re sharing a life with someone, so that also means sharing financial hardships with each other. With combined income, you can afford more. But if one of you were to pass away, suddenly it’s back to one income with the combined income expenses.
Paying off the mortgage is one of the main reasons people get life insurance. Leaving a spouse with the mortgage can be devastating and often time they have to sell the home because they can’t make the payments. With life insurance, those payments are covered in the event of someone’s death.
If you haven’t noticed already, kids are expensive. Nerd Wallet calculates that it will cost over $260,000 just for the basics of age 0-18. That’s not including saving for college. So if you’re bringing in the primary income for the family, having a child is just one reason to up your life insurance coverage.
Whether you or your spouse are going back to school or you’re taking them out for your own child, a co-signed student loan means you’re responsible to pay it back if the co-signer passes away.
Replacing lost income is another main reason why people get life insurance. So if your pay has increased it may be time to up your life insurance coverage.
Sometimes with pay raises, we start spending more. It may be necessary to spend that money or it may just be a lifestyle change. If you didn’t think you needed a life insurance coverage increase with your pay raise, you may need it for your lifestyle change. Your beneficiary shouldn’t have to change the way they spend money if you were to pass away. With a life insurance coverage increase, they can continue to live the same way.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting life insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.