People in their 20s and 30s have a lot to learn about life—but they have even more to learn about life insurance. Some younger adults believe life insurance is something you set up and forget about—but that just isn’t the case.
Life insurance policies do not manage themselves—premiums, interest rates, and market conditions can change quickly, and so can your life circumstances.
In this blog, the Munster life insurance experts at Gutierrez Family Agency will show you a few signs that it’s time to make some changes to your life insurance policy. Your life doesn’t stay the same—so why should your life insurance policy?
You have a new mortgage.
A mortgage is a very important milestone in life—it’s an investment in your finances, your lifestyle, and your family growth and success. But what most people don’t realize is that taking on a new mortgage (or paying off your existing one) changes how your life insurance policy should operate.
If you’re taking on a new mortgage, you’ll need to adjust your policy to ensure your home will be left to your family without any outstanding mortgage debt in the event of your death. If you’ve just paid off your mortgage, all of that money you have set aside in your policy to cover your mortgage in the event of your death in unnecessary—so remove it from your policy as soon as possible. This will shrink the overall size of your life insurance benefit, and will ultimately lower the cost of your life insurance on a month-to-month basis.
You experience a change in your health.
There’s nothing like a health scare to make you come to terms with your own mortality. It’s a tough moment in life to realize that you will not live forever—and in times like these, it’s completely normal to think more about your life insurance.
Certain health problems and conditions can leave you unable to qualify for new forms of life insurance for a period of months of even years—so talk to your local life insurance experts about the options you might have. Some term life insurance policies offer a “conversion” option, allowing you to move from term to whole life insurance without too much trouble. However, a lot of these conversions have an age deadline around 60 or 70 years—so it’s better to convert your policy sooner rather than later.
You’ve added someone to your family.
It doesn’t matter if you’re having your first child or your 14th—adding someone to your family calls for an immediate change to your life insurance policy. The best life insurance policies should help your children pay their way through their college careers—so if one child becomes two or two becomes three, you’ll need to adjust your plan accordingly to account for the new beneficiary in your life.
Adding a new member to the family should also change the parental protections you’ve set in your life insurance policy—and this goes for working and non-working parents. For example, a stay-at-home parent’s death creates a similar burden to that of a working parent. The best life insurance policies protect children in the event of a parent’s death by giving the living parent enough financial flexibility to stay home and raise the children until they reach high school age.
Your rate has increased.
Life insurance rates can increase at a moment’s notice—and don’t expect a push notification or a reminder when that happens. A lot of life insurance rates will automatically increase every few years, and others will increase at seemingly random moments. It’s important to keep an eye on your policy to see if you’re still the best value for the price. If not, you might want to shop around for a policy that offers more for less.
Your policy is about to expire.
Uh oh. If you have term life insurance, you better know when your term is up. If you’re not paying attention, you could be subject to dramatic rate increases in order to renew or replace your plan.
Most life insurance experts recommend reviewing your policy options a year before your term is set to expire to ensure that you always have the coverage you need. We know how much you love to procrastinate—this is not the time or the place for that.
You don’t truly understand your policy.
You have a life insurance policy, but you don’t even understand it? That’s about as dangerous as not having a life insurance policy at all. Study up on your life insurance policy, and study up on other potential policies as well—you never know when there might be opportunity for better policy terms, more benefits, and lower rates.
Talk to The Munster Life Insurance Experts.
Gutierrez Family Agency is your trusted Munster insurance firm for all kinds of insurance, including life insurance, car insurance, homeowner’s insurance, and a variety of other insurance policies that can protect your family and your future. We’re here to protect the Munster and Hammond communities because we’re a part of the Munster and Hammond communities—we’re your friends and your neighbors, and we’re here to make our place in Indiana safer and more prosperous for everyone.
If you’re looking to change or make tweaks to your policy, it’s time to talk with one of our experienced insurance professionals to figure out the best options for your life insurance. Protect your family and your future—schedule an appointment with Gutierrez Family Agency today.