Make Changes to my Life Insurance Policy
Life insurance is a way to provide for your family when you’re no longer there. A lot of people think that once they have a life insurance policy, they can pay the premiums and forget about it. Your plan should be reviewed annually, but many people don’t think about it. There are some situations where you absolutely have to review your policy, whether it be to save money or add more coverage.
Reasons to Make Changes to Your Life Insurance Policy
Your Income Changed
Whether you got a raise or lost your job, your life insurance need tend to change when your income changes. Make sure the amount of life insurance is still compatible with your income.
You Lost Weight
Losing weight may also qualify you for discounted premiums. That’s a pretty good motivation to lose the weight you’ve been wanting to get rid of.
Changes in Your Health
If you started working out and your blood pressure is down compared to what it was when you started your life insurance policy, it may be time to review your life insurance policy. A healthier you could cause your premiums to lower. Life insurance companies tend to reward people with discounted premiums when they are healthy.
Housing Status Changed
If you’ve finished paying off your mortgage, you probably don’t need as much life insurance as you did when you had a mortgage. On the other hand, if you just bought a house, you may need the insurance to make sure the house can be paid off.
Change in Family Status
Life changes dramatically when you have a child, so why wouldn’t your life insurance policy? There is a lot more that needs to be covered by your life insurance when you have a child, such as college funds and everyday living expenses. Maybe your kids are older now and you no longer need the coverage for college. Reviewing your life insurance policy could save you money.
Change in Marital Status
If you got married, it’s possible that your spouse could be dependent on your income. Life insurance can keep your spouse safe. Life insurance also needs to be changed with divorce. You are no longer responsible for your spouse and therefore, don’t need the life insurance to cover them.
Change in Your Beneficiaries
This one is related to marriage as well. Many people forget to change their policy after a divorce and leave a big chunk of money to their ex-spouse. Another situation could be that your spouse died before you so you want to change the beneficiary to your children or sibling. No matter what the situation, make sure you have your money going to the right person.