When is the last time you reviewed your life insurance policy? Chances are if you’re reading this, then it might be time for an update. Many people purchase life insurance and then stow it away in a filing cabinet and never think about it again. But, over the years, you encounter life changes that may effect your old policy, and you now may be in a position where the life insurance policy you bought is outdated. That’s okay! Updating your policy is easy and painless, but when exactly should you update your policy?
Here are 5 reasons to update your life insurance policy:
1. Employment
Did you recently get a new job or a promotion at work? Any change in employment typically means a pay increase, and any time you have a change in your income, you need to update your policy to reflect the increase to ensure you have adequate coverage.
2. Marriage
When you’ve tied the knot and said “I do,” you will want to add your spouse as a beneficiary to your policy, and vise-versa. In case of the unexpected, you both will want to make sure the other is taken care of.
3. Having Children
When you welcome a new child into your family, by birth or by adoption, it is important to immediately include your child as a beneficiary on your life insurance and financial policies. You should consider updating your insurance coverage as well, to ensure your family will be well-cared for in the event the unimaginable happens. Additionally, be sure to factor increased cost of living and college tuition into this very important financial plan.
4. Buying Home
Did you just purchase your first home, or are you buying a vacation property? Any new real estate you purchase should be included on your policy to ensure it covers the remainder of your mortgage.
5. Starting a Business
If you decide to start a business, you will want to protect the company you helped build. If the unexpected were to happen, what would come of your company? Including your business on your life insurance plan can ensure your business will continue.
Update Your Life Insurance Policy
If you have encountered any of the above since purchasing your life insurance policy, it may be time to contact your insurance agent and make an update. It’s important to keep your policy current when any life changes occur, and keep in mind that there may be other reasons than the ones listed above to update your policy. Be sure to consult your trusted Nashville insurance agent for more information about when you need to make changes to your life insurance policy.
