Ideally, you will only have to purchase life insurance once (or possibly twice) in your life. However, this does not mean that you should buy a policy and leave it untouched until the policy term ends or you pass away; in fact, the Insurance Information Institute recommends that you review your insurance policy at least once per year. After all, your health, your family, and your finances do not remain static until you die, so it follows that you will need to adjust your coverage as time passes. This does not mean that you need to purchase a new policy entirely. Instead, read on to learn more about adjusting your life insurance coverage.
When to Adjust
If you initially purchased a term life insurance policy and the coverage period has ended, then you will need to purchase another life insurance policy. However, in the majority of cases, your needs can be addressed by adjusting your existing policy to fit the new status quo for you and your family.
The following scenarios are common life situations in which you should update your life insurance coverage:
- Financial changes – If your finances change, for better or for worse, you should review your life insurance policy. If you find yourself financing the purchase for a new home, caring for a loved one, inheriting a sum of money, or if you or your partner experience a change in job or salary, we recommend taking another look at your policy.
- Family changes – As your family members (particularly your children) are likely to be the beneficiaries of your life insurance policy, changes to your family dynamics should warrant a change in your life insurance. We recommend adjusting your coverage in the event of marriage, divorce, having or adopting children or grandchildren, or having children who have completed school or ceased being dependents.
- Health changes – Life insurance coverage (as well as your costs) is based on your overall health, and a significant change in your or your partner’s health will necessitate a policy adjustment, particularly in the case of a severe illness or a disability.
How to Adjust
Just like when you obtained your initial policy, there are some things to be taken care of when changing your policy. When you meet with your life insurance agent, make sure you’re completely aware of whether you are able to adjust your existing policy or if you will need a new one, what the cost of your new policy—as well as the cost of changing your policy—will be, exactly what your new coverage will be, any tax implications, and when the policy will enter into effect. Be prepared with all of the information (policy number, insurance carrier, and expiration date) of your existing policy when you meet with your agent.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.