As your life situations change, so do your life insurance needs. That's why it's vital to keep your life insurance policy up to date by reviewing it regularly with a financial professional. Here are some important factors to consider when looking over your policy.
You should plan to meet with a financially professional at least once a year. Doing this can help you make sure your policy is still right for your needs and that the information you have on file is still accurate. You should also review your policy whenever something major occurs in your life. Some changes that should prompt a review include:
You may have purchased a life insurance policy when you were single, or maybe when you had your first child. But your family may have grown since then, so you may wish to increase your coverage or make some adjustments to ensure all your loved ones are protected.
If you suffer an unexpected disability, it can be a burden for you and your family. Paying for your life insurance can be tough too. When you meet with your financial professional you can discuss policy riders that can help keep your coverage going if you’re unable to work due to an illness or injury.
Recently tied the knot? It’s important to discuss with your spouse how you’ll depend on each other for income, so you can choose the best policy as a couple. If you’re getting a divorce, your coverage will likely need to be adjusted, as well as your beneficiaries.
A variety of financial challenges can impact the amount of life insurance you may need. From caring for elderly parents, a special needs child, educational expenses or an increase in health care needs, you may want more coverage to help your loved ones cover any increased living expenses when you pass away.
It’s possible that the people you have listed as your life insurance beneficiaries have changed. In this situation, it’s important to make sure your policy is up-to-date and accurate. If you don’t name a beneficiary, or the beneficiary is under age or no longer alive, a court will likely decide what happens to your estate. When you review your life insurance policy, consider all changes in your relationships such as marriages, remarriages, divorces, deaths, births, adoptions, and friendships.
Have you made a big purchase resulting that created a new debt? You’ll likely want to discuss this with an agent. Consider how your family would pay for your debts if you pass away. If you’ve downsized, you may not need as much life insurance coverage.
When you sit down with your life insurance agent, be prepared for questions like:
The only constant you can count on is that life changes. So, your life insurance policy is something that needs to be reassessed and updated on an ongoing basis. Regularly reviewing your life insurance plan with a financial professional will help ensure that your policy stays up-to-date and your coverage is adequate to protect your loved ones. A review of your life insurance policy may help you:
If you think it’s time to review your life insurance policy, North American Company for Life and Health Insurance agents can help you. To learn more, submit your information through North American’s find an agent page.