For many people, life insurance is a necessity designed to ensure their family's needs in the event of a tragedy. Every so often, it is important to review and possibly revise your insurance coverage.
Changes such as marriage, a new baby, high school or college graduation, or moving to a new home may mean it's time to reevaluate your life insurance needs. We offer recommendations for life insurance during the course of our regular client reviews and we can also discuss your life insurance options. Please also check on our life insurance buying tips page.
 

MARRIAGE AND DIVORCE
 
        If you're getting married or recently married, there may be a need for life insurance. If you already own life insurance, review your beneficiary designations and also take a moment to ensure that the coverage is sufficient.
        If you haven't purchased life insurance, this may be a good time to think about it.  Be sure to compare prices and benefits of employer-sponsored and individual plans.  Remember: Company- sponsored life insurance isn't portable, but an individual policy will remain in force for the time period you select, as long as you pay your premiums.  Many people believe company plans are less expensive than individual contracts.  That's not always true, particularly if you're healthy and don't use tobacco products.

        A divorce also may prompt changes to your beneficiary designation and coverage amount. If you have no dependents, you may want to decrease your coverage.  But if you have children or parents who count on you for support, life insurance is important to their future security.

A NEW BABY

        One of the last things new parents want to think about in the months after a baby's birth is life insurance.  However, the arrival of a child may signal that it's time to increase your life insurance coverage to accurately reflect your new responsibilities.
        New parents often forget that both of you need to be insured once you've started a family. If a stay-at-home parent dies, life insurance will be needed to pay for important tasks like child care and household expenses.

EMPLOYMENT

        A change in work status can trigger a variety of insurance questions.  For example, when you begin a new job, your insurance benefits are likely to change.  You may need more or less insurance to supplement a policy offered through your employer.  If you start a company of your own, you may want to add supplemental coverage to protect your family, partner or business (often called cross-purchase or buy-sell agreements).
        It's important to note that a change in work status doesn't always mean a new job or career - it may simply mean a salary change. If your life insurance plan is based on the income you earned several years ago, take another look.  Benefits should keep pace with your family's income and lifestyle.

A NEW HOME

        If you've recently purchased a new home, it may be time to review your life insurance contract, especially if it takes two incomes  to secure and cover the mortgage payment. Could only one of those incomes stretch to cover the monthly house payment?  Or, if your income alone is used to pay the mortgage, could your spouse cope without it?
        In many cases, relocation is triggered by a promotion and accompanying salary boost.

EMPTY NEST OR FULL HOUSE

        When your children leave home and no longer rely on you for financial support, changes may be in order.  You may decide to decrease your life insurance benefits after the nest is empty.  Or, like many other people, you may find yourself caring for grandchildren, parents or other relatives. If that's the case, you may want to retain or increase your coverage.
        For some people, this is also the time to examine estate- tax issues. In some cases, more than half of what you leave behind is earmarked for the government. If your joint estate is valued at more than $1.3 million, consider permanent or survivorship life insurance. Benefits from these policies are often used to pay federal taxes so that family assets, such as a business, don't have to be liquidated to meet the tax bill.