Marriage, children, new job, new home, retirement – there are many great life events that are worth celebrating.
There are also unfortunate events that we may deal with along the way – but one thing they all have in common is that they can impact your financial situation. When your financial situation changes, your life insurance coverage needs change as well. Your agent has several options when it comes to modifying your policy.
Changing the Value of Your Life Insurance Policy
Homeownership, marriage, children, and so on are all examples of life events that create new financial commitments for a family unit. These commitments could be a huge burden if one of the family’s income providers passes away. Just think of
a widowed spouse trying to handle a mortgage, childcare, and day-to-day living expenses without the other’s income.
Understanding the amount of coverage your family would need – and for how long – is a critical component of a comprehensive Life Insurance policy.
Changing from Term Life Insurance to Whole Life
As you probably know, Term Life Insurance is active for a specific period of time, while Whole Life is typically meant for an individual’s entire life. As you get older, your children start to grow, you retire or go through other life changes, converting to a Whole Life Insurance policy may be the right decision.
Many Whole Life policies also have a “Cash Value” account option, and you may be able to withdraw or borrow from this account for a deferred fee or penalty.
Later Life Changes
If your children graduate, you and your spouse retire, you pay off your mortgage, or other occurrences that are typically later in life – your life insurance needs may change again. Although unpleasant to think about, a policy with a “Death Benefit” or “Final Expense” component can help keep your family secure in that worst case scenario. This would provide your spouse with funds for funeral and burial expenses.
Life Insurance isn’t always straightforward, but looking into the options available is crucial to your family’s financial security. Which of the options is best for you and yours all depends on your unique financial situation – and the way that situation changes throughout your life. Talk with one of our agents to help you understand your needs and your options for coverage.