When You Should Review Life Insurance Coverage
Buying life insurance gives you the peace of mind knowing your family will be financially protected if something happened to you. Buy you policy isn’t designed to be bought and then forgotten about. It’s not something you are thinking about on a regular basis, so it can be easy to forget. After purchasing life insurance in Hudson, NY you will want to ensure that it keeps up with your current needs. To do this, you’ll need to review your life coverage often.
When should I review my life insurance policy?
- You’re in a new relationship. For example, if you took out your life insurance policy while you were single and now you’re living with a partner or even married, your financial obligations may have changed. Conversely, you may have been married and are now divorced and with a different partner. It’s important to update your coverage and remove beneficiaries as needed.
- Birth of a child. The addition of a child to a family can make a huge difference to the family finances. The additional mouth to feed should be reflected in the amount of cover you have.
- More financial commitments. If you’ve recently taken on a mortgage or a new car loan, you’ll want to review coverage. Increased debts means that your family will need more support behind them, should you pass before they are paid off.
- A rise in income. Most likely, you will get used to living on a higher income and may even have a different lifestyle. This means that you would need to consider altering your level of coverage, especially if you took on more financial commitments because of the rise in income.
- Changes to the beneficiary. You may find yourself in a situation where your main beneficiary has passed away, which means that you will need to select someone else. Be sure to get this down in your policy to avoid complications.
A good rule of thumb to follow is to review your insurance policies at least every year, even if your financial situation has not changed. The team at Lofgren Agency is here to help with all of your life insurance needs. Visit us in Hudson, New York to get started.