Each person’s life insurance needs are decidedly different. After all, the life insurance needs of a newlywed will be quite opposite of that of a retiree or head of a family, for example.
As your needs change throughout your life, you should consider that your life insurance needs may change, as well. From getting married to purchasing a home and having children, the amount and type of life insurance you need may change substantially.
Therefore, it is in your best interest to reevaluate your life insurance needs as your needs continue to change. Millions of Americans are grossly underinsured and, unfortunately, they don’t find this fact out until it is too late.
When to Reevaluate your Needs
The best time to reevaluate your coverage is any time you make a significant life change. Are you getting married, divorced or expecting your first child, second child? Did you just buy a home, buy a more expensive home or downgrade to a less expensive home? All of these life changes can impact your life insurance needs, so it is best to pull out your life insurance policies and carefully review them during these pivotal life moments.
Many insurance experts also talking with your life insurance agent and reevaluating your needs every two to three years, minimally.
Marriage
Marriage, for example, can certainly change your life insurance needs, as you will now need to review your monthly income, taking into consideration your spouse’s income. You may also want to consider protecting your spouse and providing him or her with enough money to pay off the house or simply to take the time to grieve.
Home Purchase
When you purchase a home you should definitely reevaluate your life insurance needs, as you will want to provide your spouse or loved ones with enough money to pay off the house and pay for household expenses, at least for the next two to three years.
Outstanding Debts
If you have any other outstanding debts that you don’t want to pass onto your spouse or loved ones, such as second homes, credit cards, cars, and boats, for example, you will surely want to provide enough life insurance to cover these debts.
