Life insurance is something which you ought to invest in. However, once you lock into a policy, it doesn’t mean that the same policy will serve you for the rest of your life. Here are 5 instances when should reassess your life insurance policy.
1. You’re buying a house
It’s necessary to look at home insurance if you are building your dream home, or you want to renovate your house. Proper home insurance will provide coverage for the actual house, its belongings and all its occupants.
2. You’re expecting a baby
Bringing a child into this world is a big responsibility. Expect a significant rise in your household expenses (ie: baby food, clothes, toys etc). This means that there is a lot more at stake for your new family. As a parent, having enough life insurance coverage will give you peace of mind knowing that your family can maintain their standard of living and secure your child’s future. For more information, check out our article about the importance of having child insurance.
3. You’re getting married
Congratulations! Wedding planning aside, one of the more important considerations for soon-to-be-newlyweds is taking out a life insurance policy. This will secure your spouse’s ability to pay living expenses, medical bills, vehicle payments etc. What better way to kickstart your marriage knowing that your future is well assured!
4. You’re getting a promotion/new job
This one applies for a lot of people, especially young people. We’ve already mentioned why getting a life insurance policy at a young age is beneficial. However, its worth taking a look at that policy as you change jobs or get promoted.
For example, a promotion would mean that you could invest in a decent vehicle, home or purchase other goods and services as you accumulate wealth. In order to keep up with your bills and maintain your lifestyle, you should consider buying more insurance, now that you have the extra money to do so.
5. Retirees with an Empty Nest
This may be tough for some parents to hear, but you should be ready when the kids leave home. The big advantage is that your life insurance needs are likely to drop as you only need to depend on yourselves. That being said, you need to be aware that your financial & health concerns are managed appropriately. Thus, make it a point to speak to your life insurance advisor.
Even if none of these 5 reasons apply to you, its still smart to review your insurance at least once a year. The advantage is that you can speak to your advisor and find out about new products/covers which will benefit you, which you may not know about if you didn’t take the initiative.
Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.