Purchasing a life insurance policy is one of the simplest steps you can take to protect your loved ones. However, it’s also an easy thing to check off your to-do list and settle into a routine of paying your premiums without ever putting much thought into it again. Most of us think of life insurance as something that won’t impact our family for many years, which makes it easy to overlook it when you’re going through the hustle and bustle of everyday life.
But life doesn’t stop once you choose your policy, and far too many policyholders face significant life changes without adjusting their insurance policies. That’s why it’s a good idea to stop and assess your life insurance policy from time to time. Our Value Plus Insurance agents have put together this blog post to outline some signs it’s time to update your life insurance policy.
Protecting Your Beneficiaries
One of the most common problems loved ones can face after losing a family member is realizing their loved one failed to update his or her life insurance policy. A life insurance policy exists to protect your family members if anything should happen to you. None of us knows what lies ahead, and a life insurance policy gives your beneficiaries a direct payout in case the unexpected should happen. This is important even if your estate is mostly debt.
If any of these events occur, it’s important to update your policy:
● Change in Marital Status - Your marital status will most likely affect your beneficiaries. After you’re married, you’ll probably want to add your spouse or their children as beneficiaries. On the other hand, most policyholders want to remove a former spouse after a divorce.
● New Family Members - New babies are a gift to the entire family. When you’re caught up in the excitement of welcoming a new child or infant to the family, don’t forget to add them as a beneficiary.
● Change in Employment - Many employers offer life insurance policies as part of their hiring packages. It’s a good idea to assess your life insurance after every change in employment to make sure your loved ones will be adequately covered.
● Lifestyle Changes- It’s not uncommon to experience changing financial needs and expectations over the years. Your spouse and children may be accustomed to a different lifestyle now than when you originally purchased your insurance policy. It’s a good idea to assess your family’s financial needs and determine if any changes need to be made from time to time.
Protecting Your Family’s Future With Life Insurance Coverage
Don’t make the mistake of overlooking something as important as updating your life insurance policy. While the future may be uncertain, you can be sure your family will be cared for if you’re not around. At Value Plus Insurance, our experienced insurance agents offer sensitive and thoughtful support to help you choose the best insurance policy for your needs.
We help provide Wisconsin and Minnesota residents with personal insurance, which includes life insurance, health insurance, renter’s insurance, and more. Call us at 952-435-0550, or contact us to discuss your life insurance needs.