Does Hitting Financial Milestones Mean You Need A New Policy?
Most people would agree that a 20-year old entering the workforce for the first time has different financial needs and priorities than a 40-year old with a family and a mortgage. What’s more, many people who buy a life insurance policy will seldom think about the terms of it again. However, life insurance policies can be dynamic, your requirements will likely evolve as you get older, and the policy should be checked periodically.
There are some typical financial milestones you’re likely to encounter in your life that will serve as good reminders that it might be time to reconsider your life insurance policy. Keep reading to find out what these might be:
A New Home
Taking on a mortgage will likely be your most significant source of debt in life until it’s paid off. Once you go from renting a home to owning one, the obligations set in. If your income is critical towards paying off that mortgage, the need for life insurance immediately escalates. Use this financial milestone as a reason to upgrade your life insurance policy.
A Growing Family
Another significant expense for a couple is children. It’s reasonable to upgrade your insurance policy to add more of a payout because the costs of raising a child and sending them off to college are steep. The right life insurance policy can ensure that each child will be able to have the funds to go to college, continue to be raised comfortably by your remaining partner, and that all the bills can still be paid.
A Change In Income
A key reason life insurance exists is to ensure that the life your family has gotten used to because of your income can persist forward should anything happen to you. As such, the amount of coverage typically offered will change if you have a significant change in income. If there was a significant pay increase, you’d want to increase your coverage so that level can be matched. If there was a significant decrease, you might want to downgrade the payout of your insurance plan, so you aren’t paying much into it each month.
Want to find out more?
Schechner Lifson Corporation is an independent insurance agency that can offer you help in deciding what level of life insurance policy is appropriate for you and your family. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right type of plan for you and your employees.