5 Reasons You Need to Update Your Life Insurance Coverage

When was the last time you reviewed or updated your life insurance policy? If you don’t remember, The Policy Source recommends that now is a good time to get a checkup to ensure your policy is covering your present needs. Due to major life changes or circumstances since you first purchased your life insurance, your policy may need to be adjusted to reflect those changes. Even if you haven’t experienced significant life events, your financial goals may have shifted. It is a good idea to review your life insurance policy each year, especially to ensure your coverage is up to date.  

Reasons to Update Your Insurance Policy

There are numerous reasons you may need to re-evaluate your existing life insurance coverage and make adjustments. Here are five major reasons you should reassess you life insurance policy:

  1. You recently got married or divorced. Your life insurance coverage needs to be current to ensure that your beneficiaries are up to date, and that people who should be on your policy are, while people you have ended relationships with are not.
  2. You have a new child or dependent. When you have a child or add more dependents, the costs of raising your family will increase. Any new addition to your household should be a key catalyst to reassessing your insurance levels.  
  3. You purchased a new home. If your life insurance has been structured to cover your mortgage payments and you move to a more expensive home in Austin, TX, you will need more coverage.
  4. You started a business or changed employment. Changes in your business liability or your employment status or income are events that often require a shift in life insurance requirements.
  5. You’re planning for retirement. Planning for your long-term goals have a different financial focus once you stop actively earning income. Your coverage will likely need to be adjusted to reflect that loss of income.

If you have experienced any of these life events, it’s time to take a look at your life insurance policy in order to maximize your financial success and give you peace of mind. For more information about how to ensure that your life insurance policy is in step with your current needs and circumstances, contact one of our insurance agents at The Policy Source in Austin, TX today.