View All Blog Posts

6 times you should revisit your life insurance coverage

Whether it’s buying a house or planning for retirement, some of the most important milestones in your life should serve as triggers for revisiting your life insurance coverage. 
  1. When you land the job or finally decide to leave it: A career switch is a great time to reevaluate your supplemental or employment-based life insurance needs. This is especially true if your salary has gone up or down recently. If it’s the latter, consider buying a smaller policy that increases in value over time. If you’re a freelancer or contract worker and your work arrangement changes frequently, it might be beneficial to purchase life insurance coverage with your employer once the opportunity is presented in order to take advantage of guaranteed coverage with less medical questions. Self-employed? Purchasing individual life insurance that goes with you even if you leave your employer could be one of the best options for you.
  2. After you say, “I do:” From choosing where to have your honeymoon, to what color to paint the bathroom, marriage is about choices, compromise and a lot of hard work. While planning your future together, don’t put off discussing what could happen if one of you passes away. According to Forbes, “two adults bringing home the bacon is the new norm”1 and if you’re depending on both salaries to cover everyday expenses, losing one income can be an unexpected financial burden, not to mention expenses such as funeral costs. Do what you must to ensure that your spouse’s future is financially secure. 
  3. Beyond the white picket fence: Your home is your sanctuary, but can also be the largest expense for many Americans.2 Loss of a spouse can be one of the reasons surviving spouses lose their homes to foreclosure. At a time when your spouse would already be overcome with your loss, housing is the last thing that should be a concern. 
  4. Before the first “goo-goo ga-ga” is uttered: While you think up names for your little bundle of joy, also consider the costs associated with daycare, ballet lessons, college, and every outgrown pair of shoes. The added financial security that life insurance provides may help ensure that your child is able to pursue their future dreams. 
  5. When they give you the gold watch: As you’re planning for retirement, consider how much you or your spouse would need to maintain your current lifestyle if one of you isn’t around. And we don’t mean out playing golf. 
  6. When it’s you, yourself, and you…and that’s just the way you like it: You might think being single negates the need for life insurance, but think about whether you take care of your elderly parents or anyone else who might struggle financially if you’re no longer there to help out. Also, as if you need another reason to be mad about your student loans, here’s a “fun fact:” depending on the type of loan you have, a lot of private lenders don’t offer death and disability forgiveness. That means the lender can attempt to collect from your estate or your co-signers. This is something that married people should take into account, too. 

Understanding the value life insurance delivers can help you feel more secure during critical times. 

Brokers and benefits administrators: Considering that employees who have access to supplemental life coverage rarely revisit their initial coverage decision–with 44% never changing it3–it is crucial to convey the importance of bridging the coverage gap to employees to help foster more appreciation and engagement in their overall benefits plan. 

---

1 Forbes: 4 Dual-Income Households Tell All: How We Save and Spend - https://www.forbes.com/sites/learnvest/2013/11/04/4-dual-income-households-tell-all-how-we-save-and-spend/#7b8b6e9c3e08
2 Bureau of Labor Statistics Economic News Release: Consumer Expenditures 2016 - https://www.bls.gov/news.release/cesan.nr0.htm
3 Can You Hear Me Now? Employee Views of Benefits Communication and Enrollment, LIMRA, 2015.

Posted on September 26, 2017 in Life Insurance

Tagged as Life insurance Life Insurance Awareness Month