5 Reasons Update Your Life Insurance Policy - Coverlink

5 Reasons Why You Need to Update Your Life Insurance Policy

by | Jan 12, 2021 | Life Insurance

As we age and reach different milestones in our lives, our update life insurance needs change. If you’ve experienced any of the following life changing events, it’s important to reach out to us, so you can ensure that you are adequately covered.

  1. Change in Marital Status:  When you get married, you and your partner should evaluate each of your life insurance policies. It’s important to do this because, in the case of the unexpected, both of you want to make sure that each of you will be taken care of. In addition, your life insurance policy should be reviewed and possibly modified in the case of a divorce.
  2. Growing Your Family:  Whether it’s your first child or your fourth, you need to update your life insurance to include your child as a beneficiary. You might also want to consider the type of coverage, and the amount, you want for your child. Raising children is extremely costly and making sure they are taken care of is a responsibility most parents feel pretty strongly about.
  3. New Home:  When purchasing a home, it’s important to note the terms and conditions of your mortgage. You can change your life insurance policy so that it covers the remainder of your mortgage cost.
  4. Change in Job Status:  You should review your life insurance coverage if you have had any recent changes in your employment status like a change from full-time to part-time, a raise, start of a new job, etc. All of these changes can affect your income level. Do not leave your financial responsibilities as an afterthought, and make sure you have adequate coverage.
  5. New Loan:  Taking out a loan is another way of acquiring debt. It’s important to ensure that you have a life insurance policy that will cover the costs of that debt. You do not want this debt passed on to your spouse or loved ones.

Life Insurance is critical for nearly every stage of life. Seeking coverage should be an active process, and individuals shouldn’t assume their insurance needs remain steady over time. Consider contacting your licensed advisor to better understand your insurance and future needs.

Download and print our easy to reference infographic.