People forget all the time. Did I leave my files in the office? Was the oven turned off before I left? Have I paid my credit card bills for last month?
Some of these are trivial, to the point of unimportant, almost. But other things that we forget might come back to bite us in a big way (bless those husbands that forget their wedding anniversary). While we can’t really help with remembering shopping lists, bills, or anniversaries, we do have a certain amount of assistance to offer when to comes to remembering when to get your Life Insurance policies reviewed.
Now most people think that after buying a policy, you can now sit down, relax and watch the years simply go by. Well you could do that, which would be very unwise, just like those husbands that ignore the concept of recurring anniversaries.
In simple terms, make sure that whenever there is a significant life change, you need to have your policies reviewed for adequacy and relevancy (Are they enough? Are they still the right policies for me?)
Here is a list 4 life changing events that you need to give your agent a much needed call.
This is a beautiful thing to have that most people look forward to. It is an event that prompts you to leave your care free way of life and start considering your spouse. (Don’t blame me, you were the one that said “I do”)
For this reason, you and your spouse need to purchase insurance policies that cover each other in the event that some misfortune happens. This will ensure that your spouse will be able to live a comfortable life despite the fact that you are not there anymore – scary as it may be, it is something you need to consider.
An important thing to note here is that you should categorically mention the name of your spouse in your list of beneficiaries, so the proceeds go to the right person (as you intended, of course).
Pro tip: If you buy a policy on your wedding day, the insurer will never let you forget your anniversary. Just saying.
Birth of a Child (or Adoption)
After marriage most couples intend to have children. It does not matter the means, whether by birth or adoption, as long as the child is legally in your name, you probably need to revise your policies to reflect the increased responsibilities.
You need to evaluate your life goals so that your children can comfortably get a proper education even after you are gone, and get policies that provides the correct amount. You might need more coverage to provide for your children. They may needed dedicated savings plans for their further education.
Consult your policy provider to give you the options that you have so that you make the best decision that is of course within your financial ability.
Buying a House
What? I can already hear you protesting at the back. What about Mortgage insurance? Isn’t that supposed to cover the house?
Actually here’s the good news – you are 100% correct. Assuming you take a loan for the house, our friendly banks
force encourage you to take up mortgage insurance, which is a decreasing term for the most part.
But there are still reasons to review your policies. Perhaps with the house, one major part of your savings goals is complete. Maybe your next major goal is to plan for retirement. Or perhaps your critical illness needs now outweigh your death coverage needs because of the mortgage insurance.
Policy reviews don’t always have to entail buying more insurance – even a shifting of coverage types can be more than enough.
Got a promotion? Congratulations on hitting a higher tax bracket, dinner’s on you. As poor ole Uncle Ben said – With great power comes great responsibility. What he meant of course, is that as your income increases, so does your financial responsibility. Your policies would have to change to reflect that responsibility.
Perhaps your coverage needs will increase significantly enough, that justifies taking our a new Whole Life or Term plan. Or you may decide to just save more for the future, and take up a little more endowment. Whatever your decision, we urge you to make it after due consideration.
There you have it. As you get married, get a child, buy a house, or enjoy career advancement, revel in the new found lifestyle. Policy reviews don’t necessarily have to cost you more money in insurance, but rather it is a good opportunity to refresh yourself on what you have and see if it is still relevant going forward. So don’t forget to give your agent that much needed call.
Did you have your policies reviewed at these points in your life? Let us know in the comments below!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.