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6 signs you need to increase your life insurance coverage

by on December 6, 2021 in Uncategorized

increase your life insurance coverage
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Taking out life insurance is the first step to securing the financial stability of your family and loved ones if the inevitable happens. But how do you know if your current life insurance coverage is enough to guarantee financial support for those who matter to you?

The truth is, life insurance isn’t a “buy it and forget it” financial responsibility. As your life changes, so does your coverage. Here are the 6 tell-tale signs you need to talk to your life insurance broker about increasing your existing coverage.

You Got Married

Marriage is a covenant that comes with the promise of sharing financial hardships together with your spouse. As such, when it happens, you need to review your beneficiaries and increase your life insurance coverage.

Doing so will make it possible to support your life partner financially should the unthinkable happen. You might also want to factor in other costs and debts when reviewing your policy.

For example, chances are that you took a loan to cover your wedding expenses. Would your spouse be able to repay them comfortably if you passed away without having cleared them? Think about it and make a sensible decision.

You’ve Added a Child

Adding a new member to your flock is a wonderful feeling. But then again, raising a child until they are self-sufficient is expensive. Your spouse may not be able to meet these growing needs if something were to happen to you.

If you’ve recently added a new member to your family, it may be time to up your life insurance coverage. This will ensure that your family can maintain the lifestyle they’re used to even if you’re not around.

If you plan on covering your kid’s scholarly needs, braces, and future wedding ceremony, make sure you adjust your policy to reflect those expenses. If there’s no room for adjustment, then go for an upgrade.  

You’ve Bought a New Home

Purchase of a new home is a rewarding and exciting endeavour for anyone. But unless you have a huge savings account to offset the costs, there’s a good chance that you took out a mortgage to buy a home.

Paying off the mortgage is challenging, not to mention servicing utilities and maintenance costs. Buying a home comes with hefty costs, which means it may be the right time to increase your life insurance coverage.

With sufficient coverage in place, your loved ones are likely to pay off your mortgage and other expenses even if you passed away. The last thing you want to imagine is them getting forced to sell their family home or losing it to creditors.

Your Debts Have Increased

Have you added any debts over the past years? If yes, now is a great time to increase your life insurance policy coverage. Things like private student loans, home equity loans, or other debts will ultimately shift your financial goals.

If your spouse or parents co-signed on your behalf, they may be liable to repay the loan if you default or depart. You can protect them by taking out a life plan whose proceeds they can use to offset loan balances. Of course, you would hate to tarnish their credit rating for your failure or inability to pay your debts in full.

You’ve Recently Been Diagnosed With a New Medical Condition

Health issues can emerge without notice. And when they do, they usually prompt a sudden change in your health status.

Whether you or your loved one has been diagnosed with a medical condition, it’s a good idea to review your life insurance policy. Certain health conditions have a measurable impact on your coverage, including:

  • Diabetes
  • Heath diseases
  • Asthma
  • Sleep apnoea
  • Mental health conditions

Life insurance tends to become more expensive as these long-standing medical conditions progress. As such, you’ll need to increase your life insurance policy to cover treatment and future expenses.

Your Elderly Parents Need Assisted Living

Conditions may have changed for your elderly parents who depend on you for their day to day needs. If your aged parents require assisted living or medical care, it becomes imperative to keep their requirements in mind. This could mean hiking your life insurance policy to guarantee that they will be taken care of if you pass away.

Conclusion

Life circumstances change all the time, and the reason you must always remain prepared for the unforeseen. If there have been drastic changes in your life, it’s critical for you to review your life insurance to determine whether or not it’s still enough to meet your growing needs. By upping your life insurance, you ensure that the people you love have the right protection in place.

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