When should I review my Life Insurance?

Whether you have a term, universal, or whole life policy don’t get in the habit of putting them on the back-burner and waiting for the agent or company to notify you one policy or another is about to expire. The life insurance marketplace and your life change constantly and being on top of those changes will give you the advantage in protecting yourself and the future of those you love.

 

Changes in your life should mark changes in your life insurance. Here are examples of key life events:

  1. Birth of a Child – Your child may never be as healthy as the day he/she is born. Whole child life policies can be purchased very inexpensively and will provide a policy you can pass on to your child when they turn 18. Even if they develop a health condition down the road the policy can never change to reflect this, and there are optional riders that allow you to purchase additional coverage at 5 times throughout the policy’s lifetime.
  2. Marriage and/or Divorce – Finding that special someone or separating from who you thought was your special someone means re-assessing your future plans. Whether it be income protection, spousal or child support protection or the plan to possibly add to your family one day life insurance should be part of any future plan review. Most younger couples rely on two incomes in the beginning of their lives together, but if one dies prematurely your spouse would be left struggling to make ends meet with debts and obligations. On the other hand soon to be separated couples need to be thinking about updating their beneficiaries, updating payors on their policies to ensure their ex is not payor to ensure any policy in force will not lapse for non-payment . The same applies for second and third marriages. Review, review, review!
  3. Thinking of a major purchase? A new home, a secondary property, a rental investment property or that dream car you have always wanted? Who will have to pay for that investment or dream if you or your loved one is taken early? Life insurance can be tailored as a diminishing value policy to cover mortgages, can be a second to die policy or customized to your exact needs. Let your insurance professional review all the benefits and options life insurance can offer you. Life Insurance is no longer a once size fits all product!
  4. Job Changes – How many among us are still working for our first employer? How common is it to see coworkers switch jobs every few years because the grass is greener on the other side? Most employees do not realize that their benefits do not go with them … and when applying for a new life insurance policy it is at their current age which can lead to a higher premium. Not to mention there is a gap in coverage between having short and long-term disability, life insurance, health insurance and what is offered at the new job may not be enough coverage or cover all of an individual person’s risks.
  5. Health Changes – Have you lost 10 or more pounds? Quit Smoking or Chewing Tobacco? Have you been there beside a loved one when their health declines only to discover there is no health, life, or disability insurance in place. Take advantage of your hard work to stay healthy and apply for insurance at those times! Do you still have some work left to do to get to your ideal you? Don’t wait to fully insure or partially insure yourself even if it means a higher rate for a short amount of time, at least you are protected.
  6. Death of an immediate family member – If you suffer a sudden and unforeseen loss take a moment once the waves have slowed down and you feel life returning to some kind of normalcy and review your beneficiaries for your life, retirement and disability insurance policies. Make any changes needed to remove your lost loved one and replace either the primary or contingent beneficiaries to ensure the death benefit of your policies goes to the person/people who you intend and not into a probate situation.

 

The great thing about life and disability insurance is that your application is a snapshot in time. You may be 25 and at peak performance in regards to your weight and health. When you apply for life or disability insurance your insurance carrier cannot come back in 5 years and reassess your health and adjust your rate. The rate is in force for the duration of the policy or as long as you continue paying the premium if it is a permanent policy.

 

In search of life or disability insurance? I am here for you. Find me on social media, pick up the phone or shoot me an email!

 

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