8 Life Changes That Affect Your Life Insurance

 
1. You take on a new expense.
Maybe you have a baby, buy a house, or take on a small business loan. Whatever the case may be, adjusting your life insurance for the change is critical in maintaining your spouse/child/business's financial well being.

2. You divorce or are widowed.
While canceling your policy all together is an option, a better option is to speak with your financial planner. Life insurance can still play a critical role in estate planning and providing for your children. Plus, many divorces require former spouses to continue life insurance coverage.

3. You get rid of debt or expenses.
Maybe those kids are out of college and (finally!) financially independent. Maybe you have finally paid off your home or just gotten out of debt. Whatever the case may be, it might be a great time to reduce those insurance premiums & lower your coverage.

4. You age.
While none of us want to admit, the life insurance we had at 20 just isn't cutting it anymore. Taking a good look at your estate & wealth can help you and your financial planner make the most educated decision about what is the right amount of life insurance for you.

5. You are unemployed or underemployed for an extended period of time.
A long stretch of lower income typically means more debts and less saved. less savings mean that your spouse would be even more dependent on your life insurance if you passed away. unfortunately, those who use the 10-times-income often mistakenly conclude that their lower income means less life insurance is required. The loss of a job also might have ended any group insurance from an employer's benefits package.

6.You stop smoking.
Yea! You have added 10 years to your life AND you have reduced your life insurance premiums dramatically.