5 Signs You May Need to Increase Your Life Insurance

No one lives forever. Everyone knows that. It’s why so many people take out life insurance policies – to help care for their families financially after they’re gone. Something not everyone thinks about, though, is how their family’s financial needs may increase and change over time.

Here are five signs that you may need to up your life insurance:

1. There’s Been an Addition to Your Household

Whether you have recently married, had a child, or taken on the role of caregiver for a loved one, your household size has changed, and so has your budget. Upping your life insurance to account for the increase in spending will help to ease the financial burden if something happens to you.

2. You’ve Taken on a New Financial Obligation

Have you started a new business? Did you co-sign on a loan? What about buying a house? The financial obligations that come with these actions will likely pass on to your family after you’re gone and should be accounted for when you calculate how much life insurance you need.

3. Your Income Has Risen Dramatically

If you’ve received a considerable raise, taken a new job with much better pay than your previous position, or a business venture has taken off, you’ll want to adjust your life insurance accordingly.

4. Your Lifestyle Has Changed

This can include a dramatic rise in income, but not always. Once you have paid off a loan or met some other financial obligation, it is possible that what you spend will change and need to be factored into your life insurance calculations.

5. You’ve Been Thinking About What Happens When You’re Gone

Many people include life insurance in their estate plans. Some plan to use it to pass on an inheritance. Others are concerned about the expenses that will come up for their families due to their death. If you are thinking about either of these things, increasing your insurance is an option to consider.

Here are two more reasons we have found in 2022. Consider them to be a bonus.

6. You Want to Leave a Legacy

For some people, their life insurance policy is about more than just taking care of loved ones after they’re gone. They want to use it as a way to leave a legacy. This could be in the form of setting up a trust fund or donating to a favorite charity. If this is something you’re thinking about, you’ll need to make sure you have enough life insurance to cover your wishes.

7. You Have a High-Risk Job

If you have a job that is considered high risk, such as being a first responder or working in a hazardous occupation, you may need to purchase more life insurance than the average person. This is because your family will likely need the death benefit to cover expenses if something happens to you.

What other questions do you have about life insurance? We would love to answer them for you – contact us today.