Your Changing Life: Evaluating Your Life Insurance After Major Life Events

In the rush of excitement that comes with a major life event – a wedding day, closing on a house, welcoming home a new baby – it can be a challenge to feel confident that you’ve got all the boxes checked and are fully prepared for a situation that is changing your life forever.

One area many people do overlook, but you would be smart to re-evaluate, is whether the financial protection you have in place through your life insurance policy is still meeting your needs.

Beyond those milestone events, the last several years have seen an uptick in people entering into life-altering situations, whether that’s switching careers or changing up their day-to-day lifestyle to keep their households safe.

Thankfully, whether your situation has changed drastically or just a little bit, you can conduct a quick self-analysis through our online Life Insurance Needs Calculator. All you need to do is answer two simple questions, and we’ll provide you with a needs checklist to give you next steps and options you may have.

What are your next steps?

If you have new people in your household, more assets to protect, or just want the peace of mind that a larger policy could provide, your next steps are to determine if it makes sense to get another policy that adds onto what you already have, or a new policy for a larger amount.

To answer this question, you’ll want to consider factors like your health and how much your current premium is. If you are in good health with a policy that is relatively new (in the last 10 years or so), it may make sense for you to “upgrade” to a new, larger policy. You could end up with more coverage that is still in the ballpark of what you’ve budgeted for (but remember to keep your old policy active until your new coverage kicks in).

Does your employer provide enough insurance?

It’s valuable to have a job that provides life insurance as part of its benefits package. But it’s important to consider all of your financial responsibilities and determine if it makes sense to take out a new, individually-owned policy.

If you switch jobs, or your employer decides to do away with its life insurance benefit, you could be left without coverage. Additionally, employer-provided life insurance is often equal to one or two times your annual salary, but consider the range of things that life insurance can help pay for: funeral costs, your children’s college plan, monthly bills and living expenses, and your debts (such as your mortgage or credit cards). Adding a new policy on top of what your employer provides allows you to determine the amount of coverage that you need.

Speak to an agent

If you’ve read this far, you’re clearly doing your due diligence before making a very important decision for your family’s future. It can seem complicated, but our life insurance professionals can help simplify the process for you. Start today by giving us a call or getting a quote online, and we can help you analyze your circumstances and what type of policy (and for what amount) best fits your new life.