Life keeps moving, and your life insurance needs to keep up. Here are five big life events when you should check your policy to make sure it still fits your needs:
1. You Get Married or Divorced
Getting married usually means that another person may rely on your income. Divorcing may change who you want to leave money to. After either life change, it’s smart to update your coverage and the name(s) of the person who would receive the money.
2. You Have a Baby or Adopt a Child
A new child means more expenses — childcare, school, and more. This is a good time to add or raise your life insurance so your child is protected. And don’t forget to name a guardian or beneficiary.
3. You Buy a Home or Take on a Big Loan
A mortgage or large loan is a long-term commitment. If someone depends on you to pay it, make sure your coverage is enough to help them if something happens to you.
4. You Change Jobs, Your Income Changes, or You Retire
A job change or retirement often affects your life insurance. Some employer plans end when you quit. If your income goes up or down, your coverage needs might change. Always check and consider getting a private policy if needed.
5. You Have a Major Health or Financial Change
If you get a serious health diagnosis or your financial situation changes a lot (new savings, assets, or debts), it’s time to rethink your life insurance. These changes can affect how much coverage you need or what type of policy works best.
Quick things to check during a review:
- Are your beneficiaries still correct?
- Is the coverage enough for your current life — debts, family needs, future plans?
- Does your policy’s term length match your goals, like paying off a mortgage or supporting kids through school?
Conclusion
Review your life insurance at least once a year and always after big life events. If you’re unsure what to do, a licensed insurance agent or financial adviser can help you figure it out.