Did you make a New Year’s resolution to update your life insurance for your insurance needs? Life changes can dictate a need to re-evaluate and change your life insurance. Changes such as getting married, having a baby and starting a business can increase the amount of life insurance you need. Here is a look at some of the life changes that will make you re-evaluate your insurance needs.
Getting married.
Marriage on the surface looks like an easy to understand life change for your life insurance. Once, married you need life insurance for funeral expenses and replacing your income. In the event of your death, what would your spouse need financially to replace you? What bills. loans, and other expenses would your spouse be left with? However, the initial marriage isn’t the only time you need to consider life insurance. Since you started your life insurance policy are you making more money? Has the cost of your life style increased? If so, now is a good time to look at what amount of life insurance you have versus the amount of life insurance you may need. Keep in mind that not all marriages last forever. In the event of a divorce, remember that you will need to update the name of your beneficiary.
Did you have a baby in 2020?
Similar to a marriage, a baby can increase your need for life insurance. Just like a marriage, in the event of your death, would your partner be financially hurt? A new baby brings with it another mouth to feed, more bills and expenses, and the possibility of college. All of these expenses need to be addressed in the event of your death. A policy on you to protect your child may not be the only policy you need. Are you a co-signer on any loans for your child? If so to protect yourself, a life insurance policy on your child can help soften the financial blow in the event of their passing.
Was a big purchase made in 2020?
Big purchases were touched on when we talked about marriage, but a new car or a home purchase can significantly increase your need for life insurance. A new mortgage payment can be a strain on families. Does your family need your income to cover the mortgage and the bills? Was your home purchased after your took out your life insurance policy. If so know is a great time to see how that change impacted your needs.
What should I do?
Do you have questions on how much life insurance you need and how to get started? Give us a call and let us help you make sense of it all. We can help you answer questions like. “Do I have enough life insurance through work ( https://www.erieinsurance.com/blog/enough-life-insurance-at-work ) In addition a life insurance needs calculator can be a great tool, check one out here ( Life Insurance Calculator ). In conclusion, let us help you ring in the New Year and update your life insurance based on life changes in 2020. While you are talking to us, let’s talk about your home and auto as well. Click the link below to schedule an appointment for a re-evaluation or new client consultation.
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