Life is constantly changing, and it’s changes quickly, that means that your insurance needs are changing with you. Does your insurance advisor call you to catch up and keep up to date with what’s new in your life? If not, I’d start looking for a new advisor!!
Insurance is not something you can just deal with once and leave as is forever, you want to make sure you review your coverage and needs to ensure that your family and loved ones are always properly protected in case something were you to happen to you.
So, when is it crucial to revisit your insurance? Here’s a list of some of the most important times in your life to make sure you have the right type and amount of protection:
- Change in your marital status
It’s important to review your coverage not just when you get married, but also in the event of a marriage breakdown. You want to make sure that your beneficiaries are set up the way you want them to be and your amount of coverage may be different now that you are said I DO or I DON’T!
- Welcoming children into your lives
This is probably the most obvious time to look at your insurance, because now you have a sweet, innocent child who is dependent on you for EVERYTHING, including finances. Keep in mind, as your children reach different milestones you should still be revisiting your insurance, for example, going to post secondary school is a big step and you want to make sure their goals aren’t affected if something happens to you.
- Buying a new house/property or taking on new loans
Anytime you make a large purchase like a home and you take on additional debt, it’s always a good idea to look at your insurance portfolio. If something were to happen to you tomorrow, your financial situation is very different and your family or loved ones would be left with a large amount of debt to deal with. Review your insurance coverage so that you can make sure you don’t force them into a tough financial position.
- Starting a new business or new job
If you start a new job or business venture that likely means your income will have changed. This is a good time to review your insurance and make sure you have enough protection. One of the main reasons people have insurance is to replace their income for their families in case something happened to them, so if your income has changed, chances are your insurance needs have changed.
- Death in the family
When someone in the family, like a spouse, passes away it’s always a good time to review your own insurance. Your family’s situation has changed drastically and it’s important to make sure that your own coverage is the right type and is sufficient for your children or loved ones, now that your spouse is no longer there.
These are just a few milestones in life that would create an immediate need to review your insurance portfolio, but it’s always better to sit down with your advisor annually and look at your existing coverage and needs together to make sure you actually have the peace of mind you want!
Happy #Financial #Freedom #Friday!