As your life changes, your insurance needs change as well. It’s a good idea to revisit your coverage on occasion to ensure you have enough. Here are some life events that may trigger a need for increased coverage:
1. You’ve had a child. If your family has grown since you first purchased insurance, make sure you are leaving enough to raise them if something were to happen to you. This is especially important if you are the primary breadwinner in your family.
2. You’ve bought a new home. Whether you just bought your first home or a new home with a bigger mortgage, make sure you have enough coverage to make the monthly payments or pay off the loan, in the event something happens to you.
3. Your income has increased dramatically. If you’ve recently received a significant raise or your income has increased steadily since you last bought insurance, check to make sure your coverage is still enough to replace it.
4. Your lifestyle has changed. Increased income – whether you’re making more money at work or have greater cash flow from paying off debt – often leads to lifestyle changes. If your monthly budget is higher than it was a year or two ago, your current life insurance policy may leave a gap between its coverage and your family’s new needs.
5. You’re thinking about your estate planning. Consider whether you want to leave any money behind for your children or a favorite charity, as well as to cover/pay any potential estate taxes, outstanding debt, and final expenses.
To review your existing coverage, contact your Royal Neighbors agent or call (800) 627-4762.
Article courtesy of the nonprofit Life Happens, www.lifehappens.org.