Life insurance can be a valuable form of cover to have as it ensures that your family are taken care of should you pass away. Most people tend to sign up for life insurance when they purchase their first home, however it is possible (and sometimes best practice) to have life insurance cover prior to this. Regardless of whether you currently have life insurance or are looking to have it in the future, it’s important to be clued up about when and why you should review it. Our team at LoanPig have come up with the following main reasons why you could look towards reviewing your policy to ensure that it is more in line with your personal requirements.
Marital Status Change
If you signed up for life insurance while you were single then at the time you would have been the only one dependent on your income. This changes should you get married- both you and your spouse will need to have life cover. It is also worthwhile for you to change your policy should your partner pass way or if you go through with a divorce. Marital status is an influential factor when it comes to your life insurance policy.
An Addition To The Family
Should you adopt a child into the family or give birth to a child it becomes more crucial than ever before to change your life insurance. The cover that you have should be such that it covers the day to day running of a family home, the care of your children and to support the surviving spouse too.
Changes In Beneficiary
As a newlywed you will find that your spouse is the beneficiary of your life insurance, however should they pass away or become disabled in any way, it can be worthwhile to list one of your children as a beneficiary instead.
Regardless of whether you are looking at buying a larger home or downsizing, it is important that you get in touch with your life insurance provider as it could significantly impact on how much premium you pay. If you are looking to purchase a larger house then this can tend to mean that you pay more each month and, alternatively if you downsize, you could find that you could be paying less.
Alongside this, there are a number of other situations that can mean you are entitled to a change in your life insurance cover. These include the likes of changes to your income amount, when your child leaves home and any health improvements that you may personally experience. Reviewing your life insurance is important as it will allow your policy to fit in more with your life insurance coverage in the event of a change in your financial situation. Don’t hesitate to stay on top of what you are paying into your life insurance policy as it could make all the difference in the long term!