Many residents of Austin, TX view life insurance as something to set-up, check off the list as done, and forget. Thinking this way can be unfortunate because the life insurance policy you arranged may not provide the coverage you need. Think of it this way, your life changes and your old life insurance may no longer meet your current needs. Take time each year to review your life insurance with these questions in mind:
- Did anything change with your job status? This can include a promotion, demotion, or an increase or decrease in compensation. A good rule of thumb for life insurance is to multiply your annual income by 5 to 10 to help determine how much you need for your loved ones.
- Did your health improve since you applied or since your last review? Life insurance policy rates are directly connected to your health. If you recovered from a major illness like cancer, and it’s been two to five years, your rates could be reduced. If you make some life changes, such as stopping smoking, reduced alcohol consumption, or weight, your premiums might decrease.
- If your home’s mortgage was factored into your life insurance policy, if there have been any changes to the mortgage, then your life insurance coverage should be reviewed too. If you sold the home or purchased a new home or vacation property, it should be reviewed.
- Is the life insurance rate you’re paying the best rate you can get today? It never hurts to consider having your insurance company review rates.
The Policy Source
The Policy Source provides life insurance in the Austin, TX area. Contact us today, and one of our agents will help you review your life insurance policy to make sure it meets your unique life needs.