A new year can often bring in changes in life. New jobs, new family additions, new businesses, personal changes – there are many things that can impact your planning for a new year. And although it may not be at the top of your list, how do these changes impact what – or whom – you need to protect? When it comes to life insurance, there may very well be some changes you need to make. Let’s take a look at some of these impacts and how you might want to approach your coverage.
Your Policy’s Value
If you have big personal changes like jobs, a new home, children, etc., you have new financial commitments. 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.
Your Policy’s Term
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, have children, retire, or go through other life changes, converting to a Whole Life 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 – but keep in mind that there may be penalties involved.
Your Plans for the Future
Empty nesters? Retiring? Finally paid off that mortgage? If you have these or other occurrences that are typically later in life – you still have Life Insurance needs. These needs may just be different. A policy with a cash benefit may make more sense. Or, although unpleasant to think about, a policy with a “Death Benefit” or “Final Expense” component might make sense. This would provide your spouse with funds for funeral and burial expenses.
Your unique situation is the primary factor in what life insurance you need. Let us help you review your needs and your options for life insurance coverage.