Life insurance is something that makes you tension free about your family if you, unfortunately, leave them any time they are financially protected. Insurance policies are usually not something to forget after setting it for the first time, as there are a lot of changes in your life that need to be considered in your life insurance policy. After every few years, you need to review your insurance so that it is up to date and helps your family if something unfortunate happens to you.
If you are aware of an upcoming event that will change your life, you need to keep a few things in mind. First of all, think about how the event will affect your life and your life insurance and then make changes in your coverage accordingly. Just like your life changes, your life insurance needs to be changed so that it works what it’s supposed to do.
Here are some situations when you need to review your insurance policy and update it to match the current circumstances.
1. You’re Getting Married
If your marital status is changing from single to married, you need to reconsider your insurance policy. Your family is growing, and you will need more financial assistance from now on. It depends on your situation. Usually, couples depend on a double salary; in that case, your death will bring a lot of difficulties for your spouse. The financial struggle will be overwhelming for a single person to cope up with if an emergency happens. The emotional and physical desolation of your partner will make it very difficult to fight financially. You will need an income replacement in case of your premature death to support your partner, and that is possible only if you have a term life insurance.
2. You’re Getting Divorced
While getting a divorce, there are a large number of facts that must be kept in mind so that your insurance benefits go to the intended beneficiary. You must inspect the ownership of the policy and fix the coverage amount according to the financial status of your ex-spouse. The divorce agreement must contain all the critical points related to the insurance, and you must determine who is going to pay the premiums to avoid any problems in the future. Make sure that you are provided with the copies of all the receipts and interval notices. Also, determine the coverage duration and consult your insurance lender for all details before you file for divorce. Reconsider the beneficiaries, so your benefits go to the right person.
3. You’re Purchasing a House
Are you planning to buy a new home for your family? Review your insurance policy to see that the insurance money can cover the mortgage amount so that if you die a premature death, your family does not lose the house. With all the emotional and physical devastation, losing home will be challenging for your family, so make sure that nobody can take their home if you are not here to protect them anymore. Also, if you’re buying a second home, review your insurance so that nothing will burden your family after your sudden death. Paying a mortgage is a difficult task to do after you lose your spouse, so make sure that before you start finding a house for yourself, apply for the insurance right away as it can take a few months.
4. You have a Child or Children
Having a child can bring joy to your lives, but it also comes with a lot of financial responsibilities as it takes many expenses to raise a child. You must know that your spouse can take care of your kid financially if you don’t live long. Each time a child is added in your family, review the insurance policy to make sure that everything is in place and your children are supported financially. To provide a good college education for your kid, you can also buy a new policy so that when your kid is all grown, they don’t have to worry about their education expenses. If you’re buying a new policy, you must buy from the same insurance company to get some discounts and save yourself from additional insurance premiums.
5. You’re Changing Your Job
If you are getting a promotion or changing your employment with more salary, you must reconsider your insurance as you can pay more premiums now. Re-evaluate your insurance situation as your income has changed, and it may affect the premiums you pay. Also, keep in mind if you had a group life insurance with your previous job company, you might review it to avoid future glitches. If your employer has already provided your life insurance, it is lost as you leave the job, so you might need a new one. You can buy a new policy or renew the old one with a new affiliation to protect your family from any problem in case of your sudden death.
6. Your Health is Changing
If you’re eating healthy and working out a lot more to improve your health, you may qualify for better life insurance. You can get new rates for your life insurance policy. If you were a chain smoker and just quit it or you lowered your cholesterol level, it means there is a chance that you can live more. This change can help you get a policy with more benefits. On the other hand, if your health is declining, don’t worry if you have an insurance policy already, it will not affect your rates if you have been paying your premiums.
Not only these events ask for a review in your insurance policy, but different frequent changes can also affect the status of your insurance policy, so make sure to review it every now and then.
By using insurance or a financial adviser from Citadel Financial Wealth Group, you will be able to ask all the questions you have and be ensured you get the best advice and mortgage product for your mortgage needs. Contact Citadel Financial Wealth Group were they make insurance, investment, and banking simple.
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