If you experience these changes, then it may be time to re-think your life insurance policy.
If you have life insurance, you’ve already taken a positive step towards ensuring the financial stability of your loved ones. However, simply getting a policy and letting it sit is not enough. Life is forever changing, and this means that your policy must change and evolve with you. Not sure when these policy changes need to take place? Then watch out for these signs that indicate that it’s time for an update.
Your Dependants Have Changed
As the main purpose of your life insurance is to provide for your loved ones, it’s incredibly important to make sure that your policy offers enough coverage to take care of all your dependents. When you first got your policy, you may have only listed your spouse as your beneficiary. However, you may now be responsible for your children, siblings, parents, and so on. If your number of dependants has changed, then it’s important that you add the new dependents to your policy and see if you can increase the coverage offered by your life insurance. This will ensure that you can provide for all your dependants long after you are gone.
Your Financial Situation Has Changed
In addition to providing for your loved ones, life insurance is designed to pay off any debts or recurring financial obligations that you leave behind. This is why you need to update your policy anytime you experience a major change in your finances. For instance, if you pay off your student loans or finish paying off your mortgage, it’s important to re-evaluate the coverage offered by your life insurance policy. Oftentimes, you can actually reduce the amount of coverage that you are carrying because your policy no longer has to meet these financial obligations. This, in turn, could result in lower life insurance premiums and more money in your pocket.
These are some of the signs that it’s time to re-evaluate your life insurance policy. Do you have further questions regarding your life insurance coverages? Then don’t hesitate to contact the experts at Patterson & Associates in Richardson, Texas. Our dedicated team is ready to address all your coverage needs today.