Buying life insurance is a great thing, but you need to ensure it covers your current financial needs. Since your life isn’t static, neither should be your life insurance policy. At Higgins & Halloran in Columbia, SC, we advise our clients to periodically review their life insurance policies and make the necessary updates.
Not sure when your life insurance policy needs a reboot? Below is a guide.
Life Insurance Policy: When To Update
If you bought your life insurance a while ago, a lot has changed in your life. You have probably married the love of your life and can’t wait to start a family. Your financial situation has improved, or your responsibilities have increased since you married. Either way, you need to update your life insurance policy to ensure your spouse isn’t financially burdened in case of your sudden death.
Getting a baby
Adding a little one to your family is exciting, but it comes with a fair share of responsibilities. Whether you are a single parent, stay-at-home parent, or working, you need to update your life insurance policy to ensure your child’s financial needs aren’t affected if you pass on.
While divorce is the last thing you want in your marriage, it can happen, and you need to evaluate whether you need to maintain your ex-spouse in your life insurance policy. Before making changes, discuss with your attorney since some divorce decrees may require your spouse to be part of your beneficiary list.
Have you bought a house with a mortgage? You need to review your life insurance policy. This way, you can be sure your cosigners and loved ones won’t be burdened by your mortgage when you die — your life insurance takes care of the debt.
Contact Us Today
Still not sure whether you should update your life insurance policy? Please call or email Higgins & Halloran in Columbia, SC for expert insurance advice.