When was the last time you reviewed your life insurance policy? If you’re taking more than a second to think about this, you’re probably due for a checkup. You may have experienced some major life changes since you purchased life insurance and your policy may need to be adjusted accordingly. However, even if nothing huge has changed in your life, your financial goals may have shifted. It’s always good to review your policy at least yearly and then make any necessary changes.
When to update your life insurance policy.
There are a multitude of reasons as to why you might want to adjust your existing life insurance. Here are some reasons to reassess and possibly adjust your insurance policy:
1. You recently got married or divorced.
2. You have a new child or dependent.
3. You purchased a home.
4. You own, started or sold a business.
5. You plan on transferring ownership of your business during your lifetime.
6. You received an inheritance.
7. You’re planning for retirement.
8. You need to support someone with special needs or an elderly family member.
9. You need to fund a higher education.
10. You experienced a change in employment or salary.
11. Your children have left your household.
12. You’ve experienced the death of a spouse or child.
If any or more than one of the above applies to you, it may be time to look over your policy again. For example, after getting married, you may want to update the beneficiaries on your policy. New business owners may want to consider purchasing additional insurance coverage. It is possible that your policy still meets your financial goals, in which case, you’ll have peace of mind knowing that everything is in perfect order.
Each person should have insurance policies that are suited to their current situation. If you don’t have a life insurance policy to begin with and are thinking of purchasing a policy, you might want to look into different policy options. Sporadically checking in on your policy can help you maximize your financial success in the long run.
Article credit: http://blog.transamerica.com/12-reasons-to-update-your-life-insurance-policy#.WS3Xu2iGOM9