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.
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.
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.
If you’ve received a huge 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.
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.
Many people include life insurance in their estate plan. Some plan to use it to pass on an inheritance. Others are concerned about the expenses that will come up for their families as a result of their death. If you are thinking about either of these things, increasing your insurance is an option to consider.
What other questions do you have about life insurance? We would love to answer them for you – contact us today.