Life insurance can be one of those topics you put on the back burner. Most of the time, that’s okay. But sometimes, big events in your life demand changes to your policy.
As you move into middle adulthood, acquire assets, and start a family, your life insurance needs may peak. But as you get closer to the end of your career, you may need less, depending on your legacy plan.
Protect your family finances by keeping your insurance up to date with your lifestyle. Here are some times you may want to check in with your insurance advisor.
Getting married, living together or separating
Life insurance can replace lost income, pay off debts and ensure your spouse has the financial strength to survive on their own. On the other hand, a separation could alter your life insurance needs. Life insurance is considered an asset in divorce. Your advisor can help you determine its value and if you and your spouse have the right coverage in place going forward.
Starting or extending your family
Life insurance secures family finances for the future, so your children will have a consistency of care and lifestyle, even if you’re no longer there to provide for them. Talk to your advisor about adding a child rider to your policy as your family grows. When your children are no longer dependent, you may need different coverage.
Buying a house
Life insurance protects the value of your home, which could be your largest asset. Customize your policy to cover the amount of your mortgage or the total value of your home. This is separate from mortgage insurance, which pays the balance of your loan owed to the bank if something happens to you. With life insurance, you choose how much coverage you want to be paid out to your beneficiaries.
Changes in your career
As your salary grows, the amount of income replacement in your life insurance policy may change. Your family needs sufficient income to maintain their lifestyle and not feel worried about the future. As you ready for retirement or release, you may need less coverage. Your advisor can tailor your policy to your needs and budget.
Deployment
Deploying may not change the amount of life insurance you need, but it could alter your risk profile. Before you deploy, update your will, powers of attorney and beneficiaries. Look for a life insurance policy that meets your needs, with appropriate exemptions for war and dangerous occupations. Determine the fine print of policy documents with your advisor, so you can serve knowing your family is secure.
Get in touch with a SISIP advisor for customized advice or to update your policies.
Give us a call 1-800-267-6681 or book an appointment.
This article is for informational purposes only.
