Even if your life insurance policy was a great fit when you bought it, that doesn’t mean it’s still a great fit today. It’s smart to re-examine your coverage every few years to make sure you still have the right amount and to make sure you are not paying too much! There are changes in our lives when a review could be particularly important.
Getting married, buying your first home or having a baby are great times to boost your protection or to get a policy, if you don’t already have one. In the later years of your life, you might be able to save some money by reducing your policy. There are a few times in between, however, when you may not think about reassessing your life insurance, but you should!
- You got a promotion or a new job
Most people get life insurance to ensure their families have a way to replace their income when they die. When your income increases – say, you get a new, higher-paying job or a promotion – it stands to reason that you’ll want more life insurance.
On the flip side, if you’ve lost your job and can’t afford the premium payments, talk to your agent. There may be options to reduce your premiums or make your life insurance work better for your new situation.
- You’ve lost a spouse or gotten divorced
If your spouse has died, making you the sole breadwinner, you may need to increase your coverage. On the other hand, if you don’t have children, you may be able to drop or reduce your policy, saving you some money.
Likewise, getting divorced could make your coverage needs go up or down. Maybe you’re taking on more responsibility for your children’s college funds, which means you need more coverage, or maybe you’ve sold your home and moved to an apartment and will no longer need to take mortgage payments into account. Before making changes, however, make sure that you’re complying with the terms of your divorce settlement.
- Your health has changed for the better
Most life insurance companies expect your health to decline over the course of your policy. But in some cases, you may be in better health now than when you applied for coverage. If you’ve lost a large amount of weight, quit smoking or found a better way to manage a chronic condition, you may qualify for better rates. Therefore, you may be able to get new coverage at a more affordable rate, or potentially reduce your existing premiums!
To have your policy reviewed call Michigan Term at 888-242-9644, or visit www.michiganterm.com
