With life insurance, like other matters related to your financial well-being, a “set it and forget it” attitude is not the correct approach to take. So when is a good time to review your life insurance? Here are four instances when a review makes sense.
1) Your term life insurance is about to renew/expire.
When your initial term period ends (such as at the end of 10, 20 years or 30 years), you can renew the policy at a higher rate quoted with your original policy. However, it is a good idea to get quotes for a new policy before you pay the higher renewal rate. Even though you’re older and may be less healthy, you could still find a better deal in a new policy.
2) You’ve experienced a major life event.
Anytime you go through a major life change, it’s time to step back and make sure you have the coverage that’s right for you. Examples of major life changes include marriage, divorce, purchasing a home, having a child, and caring for parents. Each major life change comes with increased financial responsibilities and/or debts that need to be covered in the event of your passing.
3) You’ve had a change in health.
If your health improves because you quit smoking, lost weight or regain control over an issue like high blood pressure, you might be eligible for a better rate. If your health changes for the worse, converting a term life insurance policy to a permanent policy allows you to extend your coverage without going through a medical review and locking in your cost of life insurance for life.
4) Changing jobs
Changing jobs can change your income resulting in a different financial impact your death can have on loved ones. Once your family becomes accustomed to a higher income, you may want to increase your life insurance to allow them to maintain the new standard of living. A new job could also mean a gain or loss of group life insurance benefits provided by your employer. This is especially true if you decide to become self-employed as you will no longer have access to employer-based life insurance.
In summary, any life change you go through creates ripple effects on you, your loved ones and your finances. By conducting regular policy reviews with us, we can help minimize the impact life’s challenges have on you allowing you to take advantage of the opportunities life brings your way.
Sincerely,
Mani Fenili (October 18, 2022)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MANI FENILI FOR THE BENEFIT OF MANI FENILI WHO IS A FINANCIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH INVESTIA FINANCIAL SERVICES INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF INVESTIA FINANCIAL SERVICES. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILITY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTERPRETATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITATION TO BUY OR SELL ANY SECURITIES. MUTUAL FUNDS, APPROVED EXEMPT MARKET PRODUCTS AND/OR EXCHANGE TRADED FUNDS ARE OFFERED THROUGH INVESTIA FINANCIAL SERVICES INC.
