When you purchased your life insurance policy it was best suited for your needs at the time. But as your life situations change, so do your life insurance needs. That's why it's important to keep your policy up to date. A regular life insurance review can help ensure your objectives are still being met. If they aren’t, then you can make the appropriate changes by going over your current policy with your financial professional.
Experts recommend that you regularly review your life insurance policy to determine if your policy is still performing according to expectations and meeting your financial goals. At the very least, review it annually with a financial professional, who can help you make necessary modifications according to your current needs, and help you assess the potential for changes in the years ahead. You should also review your policy whenever something major occurs in your life. Some changes that should prompt a review include:
A change in family status
You may have purchased a life insurance policy when you were single, or maybe when you had your first child. But your family may have grown since then, so you may wish to increase your coverage or make some adjustments to ensure all your loved ones are protected.
If you suffer an unexpected disability, it can be a burden for you and your family. Paying for your life insurance can be tough too. When you meet with your financial professional you can discuss policy riders that can help keep your coverage going if you’re unable to work due to an illness or injury.
When you get married, it’s important to discuss how you’ll depend on each other for income, so you can choose the best policy as a couple. If you’re getting a divorce, your coverage will likely need to be adjusted, as well as your beneficiaries.
A variety of financial challenges can impact the amount of life insurance you may need. From caring for elderly parents, a special needs child, educational expenses or an increase in health care needs, you may want more coverage to help your loved ones cover any increased living expenses when you pass away.
Naming a beneficiary is vital to help ensure your policy will pay the right person when you pass away. If you don’t name a beneficiary, or the beneficiary is under age or no longer alive, a court will likely decide what happens to your estate. When you review your life insurance policy, consider all changes in your relationships such as marriages, remarriages, divorces, deaths, births, adoptions, and friendships.
If you’ve made a big purchase recently, like a house or car, it’s important to discuss new debts such as a mortgage or vehicle financing with your agent to assess your policy coverage. Consider how your family would pay for your debts if you pass away. If you’ve downsized, you may not need as much life insurance coverage.
When you sit down with your life insurance agent, be prepared for questions like:
The only constant you can count on is that life changes. So, your life insurance policy is something that needs to be reassessed and updated on an ongoing basis. Regularly reviewing your life insurance plan with a financial professional will help ensure that your policy stays up-to-date and your coverage is adequate to protect your loved ones. A review of your life insurance policy may help you:
If you think you may want to review your life insurance coverage, Midland National Life Insurance agents can help you. To learn more, submit your information through Midland National’s find an agent page.