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September 28, 2016 - Changes in Your Life? Revisit Your Insurance During These Key Events

| September 27, 2016
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We all know that life isn’t static. A constant ebb and flow of events like family developments, career changes, and retirement inevitably bring changes to your financial needs and lifestyle. When these events occur, they can often affect whether or not your insurance coverage still reflects your needs. To help you prepare, here are some key events that should prompt you to revisit your life insurance and long-term-care coverage.

1. Marriage

Whenever you get married, your insurance needs change. You now have another partner in your life who also becomes part of your financial experience regardless of whether you share a bank account. No one likes to think of their loved ones dying, but should something unfortunate happen to you or your new spouse, having adequate life-insurance coverage will help remove financial strain during an emotionally challenging time. 1

2. New Baby or New Dependents

Any time a new child is born or you have dependents live with you, such as grandchildren, you need to revisit the insurance coverage you have to make sure it aligns with your needs. You should update both your life insurance and long-term-care insurance to reflect not only the number of people dependent on you, but also which beneficiaries you list. 2

3. Divorce

Divorce is rarely a simple process and you have many financial items to address during this time. Not only do you have one fewer person in your household to account for, you may need to revisit who owns your current life insurance policies. You also want to make sure that the coverage you currently have covers your needs as a single individual.3

4. Changes in Income & Career

Sometimes, career changes also change your household income. Whether that means you’re going into business for yourself, becoming a stay-at-home parent, or receiving a promotion that substantially increases your salary, income changes affect the type of life insurance coverage you need. Remembering to revisit your policies whenever your career and income change will help you prepare for your new financial profile.

5. Retirement

Once you enter the retirement phase, both your life insurance and long-term-care insurance should evolve with you. Where you are in your financial life will guide what steps you need to take. Maybe you've reached a level of financial stability where you no longer need life insurance, or you still may desire that protection. Either way, if you're entering retirement, revisiting your life insurance is a must. Plus, ensuring you’ve lined up long-term-care coverage for later in life when your healthcare needs may increase is a beneficial step to take for yourself and your family.

Overall, checking your life- and long-term-care insurance policies annually is a great habit to develop — because it can keep you protected and prepared for life’s varying events. If you’d like to talk with someone about your insurance protection, we’re here to help.

 

http://www.360financialliteracy.org/Topics/Insurance/Life-Insurance/It-s-Time-to-Review-Your-Life-Insurance-Needs

http://www.forbes.com/sites/robertberger/2015/09/27/how-much-life-insurance-do-you-really-need/#906289d5b1b1

https://www.dailyworth.com/posts/3859-6-reasons-to-update-your-financial-plan-now-plick

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