Many people get a life insurance policy, pay the premiums, and never look at it again. This is a mistake, because as your life changes, your needs can change as well.
Here are a few times when you should review your life insurance policy.
1. Changes to your family
When your family changes, so do your life insurance needs. If you have a baby, you may want to increase your policy to help pay for their college expenses, larger monthly expenses, and other basic needs.
Whole life insurance policies can build cash value that can be used as a savings program for your little one. The cash value of the policy can be used to get them a new car when they turn 16, offer them money for their honeymoon when they get married, or provide them with coverage to protect the families that they built.
When coverage is purchased at such an early age, the policy premiums will be low and that means that your loved ones can keep the policy for their whole life at a low rate.
2. Changes at work
Another time that your policy should be reviewed is when you get a promotion at your job. This is especially true if you are promoted to a partnership position. Usually, when you get a promotion at work, you begin to spend more money and therefore, this can increase your debt and final expenses. You want your life insurance to match your new needs, so that your debt can be settled, your house paid off, etc.
If you are promoted to a partner in your firm, you will want to add to your coverage as well. This is so that your family, spouse, child, or loved one can buy out your part of the business. Term life insurance policies work well for this coverage because the premiums are low and the benefits are high.
3. Annually
Many people choose to take advantage of an annual review. There are so many changes every year in life and in the insurance industry. By reviewing your policy with your life insurance agent each year, you will be able to take advantage of new policy developments that may suit your needs more completely.
Your life insurance coverage should not remain stagnant. Be sure to stay on top of your coverage, so that it is exactly what you and your family needs. The professionals at John B. Wright have the tools and the experience to evaluate your needs and explain your alternatives in simple, plain talk. Contact us here to learn more.
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