Having life insurance can be affected by life events, for instance, getting married, starting a new job, or having children. These may play a role in determining which policy is the best fit for your circumstances. Some people change their life insurance more than 5 times throughout their lifetimes.
If you have recently experienced or are expecting a change in your life with any of the following, then it may be a good time to review your life insurance policy.
If you are getting married then a life insurance plan can help provide financially for your partner and children if you unexpectedly pass away, allowing them to receive financial benefits. This reduces the stress on them and makes things easier during that moment in time. It can also be used to accumulate the cash you need for a long-term financial goal, as a life insurance policy isn’t only to protect your family from unforeseen circumstances.
When you get married, you will be looking to purchase a new home, and with your new home you may need to refinance or extend the life of your mortgage. This may affect your life insurance as it might not be enough to cover the increased debt load over a course of time. You should check if your insurance policy will pay the balance that your family would be responsible for in the event of you passing away.
After you are married, you will be considering having a baby. Childcare and school fees are usually expensive and the general daily expenses can add up quickly. You should schedule a time to review your insurance policy and check if your policy covers your children’s needs in the event of an unforeseen circumstance where you are unable to provide.
In the unfortunate event of a divorce, you should confirm that your life insurance is also transitioning with you. However, depending on your insurance policy, getting a divorce may mean that you need to change your beneficiary and adjust so that your children are provided for. It may also mean buying a new life insurance policy.
Your life insurance is not only designed for unexpected circumstances. Therefore, long-term plans like life savings plan can serve as savings vehicles that you can use strategically to provide for your future goals.