It's easy to simply purchase a life insurance policy, pay its premiums, and then forget to update it—after all, it's something you aren't going to need to think about for a while, right? Nevertheless, it's important to update your life insurance policy during life-changing events, as it isn't always possible to know what the future will bring.
When Should You Update Your Life Insurance Policy?
Failing to update your insurance policy can lead to those you care about not getting the coverage that they need. Life insurance is exceptionally important. Even if your estate is primarily debt, your life insurance policy will still pay out directly to your beneficiaries.
Here are a few common events that should involve a life insurance update:
● Marriage. Before marriage, many individuals have their parents as their sole beneficiaries. Their spouse may not have any claim to their life insurance money, even if they do have claim to their estate.
● Divorce. Even if someone is divorced, failing to remove them as a beneficiary could lead to life insurance going to them, and not a new spouse, or to a child.
● Childbirth. When children are added to the family, it's often a good idea to add them to a beneficiary to make sure they are taken care of.
● New jobs. When you get a new job, it's possible your life insurance options will change, and you may be able to get a better plan.
Even with the above life events in mind, it's worth reviewing your policy every year to make sure it's still current.
Updating the Amounts of Your Life Insurance
Apart from changing beneficiaries, you may want to increase the amounts of your life insurance policy as your lifestyle changes or as your family grows. As you grow older, it may become more expensive for your spouse or your children to maintain their current quality of living. Increasing the amounts related to your life insurance may be a way you can give yourself additional peace of mind.
Life insurance is something people seldom think of, but it can become extraordinarily important for your family members and their futures. Even if you are going to be around for a long time to come, life insurance policies are much more affordable to purchase when you're young. For more information (and to get a quote) contact Value Plus Insurance today.