May 18, 2024

Why Do I Need to Review My Life Insurance Annually

Your job has changed.

If you are starting a new career where your income is expected to rise, it’s important to review your policy. Your spending habits can change as your income increases. Make sure your policy is still adequate to cover your growing family’s financial needs. The same principle also applies to a significant raise or promotion within the same company.

If you have recently retired or plan to retire in the near future, what should you do? This job change may seem to be the end of your life insurance, but it is also a good time to review your policy and ensure that you are getting enough coverage for your final expenses and debts.

If you depend on insurance through your employer to cover your life, then changing jobs will affect your coverage, as policies are usually terminated when you leave your job. Checking your insurance policy is, therefore, even more crucial.

Your new business is about to begin.

Taxes and financial obligations increase when you start a new business. Whether you’re launching a brick-and-mortar business or an online store, make sure that your insurance policy can cover your needs.

Your family and business can be protected from financial hardship in the event that you pass away. You can also adjust the coverage of your life insurance to equally distribute your estate, including your new business, among your beneficiaries.

Your beneficiaries have changed.

You should review your beneficiaries list every year to ensure that the people whom you wish to receive benefits from your policy are still on it.

You want your money to be given to the people you intend. You may wish to change your beneficiary when you divorce your ex-spouse or after your child turns 18 or 21.

You should not only review your beneficiary list but also think about how the insurance payout will work for each beneficiary depending on their relationship or location. It’s also important to inform your beneficiaries about your insurance policy.

Your marital status has changed.

It’s important that you update your policy to reflect your current marital status, whether you are newly married or divorced.

You should review your life insurance policy if you have just married to ensure that your spouse will be financially protected in the event of your death. As a couple, you probably have more financial obligations than when you were single. How will your partner pay for all these expenses without you?

If you’ve just divorced, updating the policy will ensure that it is your loved ones and children who get the death benefit, not your ex-spouse.

Your family is growing.

It’s important that you adjust your policy if you have a new baby or child. Your life insurance policy can protect you from more risks. Your expenses increase as you add children to the mix. If you weren’t around to help, how would your family cover the cost of childcare, groceries, and bills, or even future college tuition, if you didn’t contribute?

Your children will be able to maintain their lifestyle if you die.

You bought a home.

Review your insurance policy if you have recently bought a home to make sure that your beneficiaries will be able to cover the costs of the new house in the event of your death.

If you are grieving, it is not the time to move your family to a different neighborhood or sell your house. Make sure that your insurance policy covers your mortgage payment so that your spouse will not have trouble paying on a single income.

If you have recently paid off or refinanced a mortgage, it is advisable to review your insurance policy.

Your health condition has changed.

It’s important to update your life insurance policy when your health changes.

You may want to consider increasing your coverage if your health has deteriorated. If you have improved your health by losing weight, quitting smoking, or other means, this could be a reason to increase your coverage.

This post was written by a professional at E Policy Review. At E Policy Review, we’re your dedicated insurance experts serving all of Florida. With a passion for protecting what matters most, we specialize in a wide range of insurance solutions, including; Employee Benefits, Disability Insurance, Life Insurance, Individual Health Insurance, Annuities, and Long Term Care Insurance. When you choose, you’re choosing expertise, dedication, and personalized service. Our team of experienced professionals is committed to finding the right insurance solutions

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