Life insurance is often purchased during a major milestone and then placed in a file where it may remain untouched for years. The problem is that life rarely stays the same.
Income changes. Families grow. Mortgages are refinanced. Businesses expand. Children enter college. Financial responsibilities evolve.
Because of this, life insurance coverage should occasionally be reviewed to make sure existing protection continues to reflect your current circumstances.
Getting Married
Marriage often combines financial responsibilities. Couples may depend on two incomes to pay the mortgage, utilities, vehicles, loans, and everyday household expenses.
A life insurance review can help determine how the surviving spouse would manage those obligations if one income suddenly disappeared.
Having or Adopting a Child
Children can dramatically change long-term financial planning. In addition to everyday living expenses, parents may consider future education costs, childcare, housing, and the financial contribution of a stay-at-home parent.
This is also an important time to review policy beneficiaries.
Buying a Home
A mortgage may be one of the largest financial obligations a family assumes. Homebuyers often review life insurance to determine whether surviving family members could remain in the home and continue making payments following an unexpected death.
Purchasing a home is also a good opportunity to review your home insurance and other personal insurance needs as part of a broader coverage review.
Changing Careers or Income
A substantial increase in earnings may also increase the amount of income a family relies upon. Employer-provided life insurance can be valuable, but it may not always be enough to meet a family's long-term needs.
Changing employers can also affect workplace benefits, which makes career transitions a good time to review personal coverage.
Starting or Growing a Business
Business owners may face additional considerations. Life insurance can sometimes play a role in business continuation planning, key person protection, buy-sell arrangements, or providing financial security for the owner's family.
Business owners can also review Rankin Insurance Group's business insurance options when evaluating the protection surrounding their company.
Do Not Forget Beneficiary Information
Even if the amount of insurance remains appropriate, beneficiary designations should be reviewed periodically. Marriage, divorce, births, deaths, and other family changes can affect who you want to receive policy proceeds.
Rankin Insurance Group can help families throughout the Lake Norman area explore life insurance options and review existing coverage as their financial responsibilities change.