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BY MATT RICHARDSON
GETTY IMAGES
If your family is growing you'll want to increase your life insurance coverage.
Life insurance offers financial security by providing a sum of money to select beneficiaries following the death of the policyholder. Millions of Americans currently have such policies in place to protect themselves should something go wrong.
Sometimes this is through an employer, sometimes it's directly via a provider, and other times it's a combination of both. And when those fall short they rely on supplemental life insurance to fill the gaps.
While many people can agree a life insurance policy is a good investment, it's important to regularly review your coverage - particularly when you undergo significant changes in your life. If you believe it may be time to reevaluate your plan or get a new one, you can start by getting a quote today.
Those still mulling over life insurance policies and plans can read on to learn if now is the right time to make a move.
While this personal financial protection is important to have, the question of how much life insurance a policyholder should purchase varies. Factors such as age, health, income and working status all influence those numbers.
Whether you have a lot or a little, there are reliable guidelines for when you should increase the life insurance you have. It's generally agreed that certain life events should trigger a bump in coverage.
Many workers have life insurance coverage via their employer and just leave it there. But what happens if that's not enough? Think of the expenses you and your family have that are currently paid via your salary. Will the insurance provided cover everyone in the event of your death? And even if it does, how long will that last?
Do a realistic review of the coverage your employer provides. If it's just basic life insurance that will fill in the gap for a year - and your death left years (if not decades) of lost income - you should probably increase the coverage you have. It can't hurt (presuming you can qualify for reasonable premiums).
If you think this scenario applies to you, speak to a provider and get a price estimate.
While a raise in your paycheck always helps it may be time to raise your coverage accordingly. If the coverage you previously had was limited to what you could afford - and now you can afford more - you should probably consider increasing the amount you have.
Also, if the new salary has caused adjustments in your standard of living (think: new, more expensive bills for things like cars, homes, etc.) you're going to need to have protection to ensure that these can continue to be paid in your absence.
Have you recently gotten married, had a child or bought a house? All three are reasons to increase your life insurance coverage. As your life changes and the bills and responsibilities rise with it, you'll want to make sure that you have life insurance for a commensurate amount.
For example, if you were single then life insurance in the amount of an individual earner should suffice. But if you're now married, you'll want the protection for two. Increase it again for each child you have.
If you have recently purchased a home you'll have years, if not decades, until it's paid off. Increase your life insurance coverage to help pay the balance should your death leave a hefty mortgage payment to account for.
While these reasons are some of the more important to increase your life insurance protection it doesn't mean they're the only ones. Do an honest assessment of your life, your family, your home, and your finances.
If you can afford to pay for the protection life insurance provides to cover these expenses it's probably worth increasing your coverage. Get started today by speaking with a provider.
