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Hello Marion,
Did you know that September is Life Insurance Awareness Month? Although it is important to review your life insurance at least once per year, September gives us an extra opportunity to focus on the importance of life insurance.
Life insurance is designed to provide a cash payment, or a stream of payments, to beneficiaries in the event of the insured’s passing. Life insurance can be used for many purposes such as estate planning, financial support for dependents in the event income is lost, or for providing those you love with financial help during a difficult time. Regardless of the reason behind your policy, it’s essential to review it periodically to ensure it’s still doing what it was designed to do. In addition, when your life changes, take a look at your life insurance policies to see if adjustments need to be made.
Here are some situations that may call for an additional life insurance review:
Lifestyle Changes
The birth of a child, changes in employment, divorce, or marriage are all examples of life changes when you may consider changing your coverage. As situations change, so do the monetary needs of those around you. Consider this when examining the need for life insurance.
Age
Life insurance costs more as one grows older and health challenges arise. For this reason, it may be best to establish a plan at a younger and healthier age. Consider your current situation and how your life may change to determine whether this may be necessary.
Asset Accrual
As you accrue additional financial resources, your need for life insurance may change. For example, if you hold life insurance to facilitate a spouse paying off the mortgage in the event you pass away prematurely, do you still need the policy once the mortgage is paid off?
As with most things, your life insurance needs depend on your specific situation, with multiple factors considered. There are many different types of life insurance policies – from term to permanent policies. We are here to support you in making decisions about your life insurance needs and the different options potentially available. And make sure your heirs/executor know where to find your life insurance policies. Over one billion dollars of life insurance benefits go unclaimed every year as beneficiaries are unable to locate their loved one’s policy. Be sure to establish proper documentation to track any new and existing policies.
Financial Steward Associates
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