Life Changes That Should Remind You to Review Your Life Insurance Policy
Reviewing your life insurance policy should be part of your overall financial plan. So when you sit down to check up on things such as your retirement and savings accounts, emergency fund, and even your family budget, it just makes sense to include your life insurance. In fact, most financial advisors and insurance professionals recommend reviewing your life insurance coverage annually.
If it has been a while since you reviewed your life insurance policy, there’s no time like the present. The following are five tips to better understand when and what to review within your policy as your life changes.
- Your family status has changed.
- If your family is growing, you’ll most likely need to make some adjustments to your life insurance policy such as increasing your coverage limit. Keep in mind that if you were to die unexpectedly, your paycheck would stop supporting your family.
- Life insurance can help fund your children’s post-secondary education, day home care costs and replace lost household income to assist your spouse and children continue to have a lifestyle they have grown accustomed to.
- Your health has changed.
- This is an important one! Let’s say you’ve been working out and eating healthy and as a result your blood pressure went down – congratulations, this may also affect not only your health insurance rates but also your life insurance rates!
- Companies generally will reward you if you are in great health by offering you discounted premiums. You may want to call your insurance company and ask what kind of rates you’d get for a preferred health discount.
- Now, let’s say the opposite happens – you are diagnosed with diabetes or some other type of disease. You may not be able to increase your individual policies, but you may want to increase your group policies through work because typically you don’t have to prove evidence of insurability.
- Your marital status has changed.
- Congratulations! You just got married – now review your life insurance! You and your new spouse may now be dependent on each other’s income – it’s important to review how much life insurance you need.
- A divorce, on the other hand, can also present you with another opportunity to review your policy and ensure that the proper changes have been made to your plan. You’ll want to make sure that factors like coverage amount and beneficiary statuses have be adjusted so you can have the proper coverage for your new life situation.
- Your beneficiaries have changed.
- This one can be related to your marital status as well – you’ll want to make sure your new spouse is listed as your beneficiary or that your ex-spouse is not!
- We’ve heard horror stories of folks forgetting to change their beneficiaries after a divorce only to leave their ex-spouse with a nice chunk of change upon their death.
- It’s important to review your beneficiaries regularly as well just to make sure you’ve got the bases covered.
- Your housing situation has changed.
- Did you buy a new house? Congratulations! But now you need to consider the fact that if something unfortunate were to happen to you, how would your family continue to pay the mortgage.
- On the flip side, maybe you just downsized or paid off your mortgage and you don’t feel like you need that much life insurance anymore.
- Review your life insurance when your housing status changes – you may need more or less life insurance, but at the very least ask good questions about your needs.
Reviewing your life insurance is a very integral piece to your financial plan – don’t neglect it just because it’s not a fun topic to discuss!
At Lyon & Butler Insurance Brokers we work with all the major Canadian Life Insurance companies to help find the right solution within your budget to help attain your financial & insurance needs. If you are interested in completing an insurance analysis & quote or reviewing your current policy our life insurance consultants would be happy to address any questions you have.
Contact the office today and we can assist in determining your life insurance needs.