Often, these changes are the result of positive life events. Some life changes may only lead you to increase your coverage or add a beneficiary. Still, to get the most from your insurance policy, it's best to tailor it to your needs as much as possible.
Some experts recommend assessing your life insurance policy each year. Most agree that it should be done after significant life events.
Because of how life insurance is structured and the purposes it serves, alterations in income, debt, family size, marital status, and more can impact what kind of policy you want or need. When there are changes in these variables, it's a smart time to re-evaluate your insurance.
Beyond life events, your insurance needs at different stages in life can also vary.
How do you evaluate life insurance?
When you evaluate life insurance, it's essential to be practical.
First, you'll want to list all of your financial needs that could depend on the policy benefit. Then, compare that to your current financial circumstances.
Important things to consider are:
Throughout all of this, it's essential to keep track of what life insurance rates are acceptable for your budget.
Life changing event insurance re-evaluation
While many situations can encourage you to re-evaluate your life insurance needs, some are more common than others. What qualifies as a life-changing event for insurance can vary between policyholders.
Below are five of the most common life event insurance variables that prompt a reconsideration of your life insurance plans.
Review your life insurance policy
There are a few main aspects of your policy you'll want to consider each time you go through a life event insurance re-evaluation. These include: how the payout is handled, how big the policy should be, and what kind of policy is best for you. Consider the following changes to come up during a re-evaluation:
Many people can benefit from online life insurance. One of the convenient things about life insurance policies is that they rarely stipulate how the payout can be used. As a result, the intentions of policyholders can vary.
Generally, people with high debt levels, who own or invest in businesses, or function as the primary income earner in their home, are among those who need life insurance most.
How much term life insurance do I need?
Determining how much life insurance coverage to get can be a complicated process. First, determine what your goals are for your policy. What financial wants or needs are you protecting by purchasing the policy? Once you decide, it's a matter of calculating how much coverage you need to meet those needs. Balance that figure with how much you're willing and able to spend on your premiums. Get your rates today with Ethos Life.