Life insurance is a critical tool for many individuals when planning for their future and the future of their family. It’s vital to know when you should be seeking life insurance and also when you should be potentially making changes to the policies you already have in place. In this article, we will look at the top eight life events that should trigger you to get or take a look at making changes to your life insurance policy.
When You Get Married
Marriage is an exciting time! When you get married you are dedicating your life to someone else and likely providing at least partial monetary support to that person and the lifestyle you are forming together. Smart couples get their finances in order when they get married and life insurance should play a part in that discussion. If one of you were to pass, it would likely be important for them to have that income that they would be losing, at least for a certain period of time.
When you Have a Child
Another exciting time in life is adding a child to your family. Adding to your family, no matter how many children you have, should prompt you to take a look at your life insurance policy. With the current cost of raising a child coming in at about $18,000 a year, you need to ensure that would be taken care of if anything were to happen to one or both of the parents.
Becoming a Stay at Home Parent
Transitioning yourself or your spouse from the workforce to becoming a stay-at-home parent is a big change in many ways. Most notably it’s likely cutting your household income. When working on restructuring your finances, it’s important to consider how your life insurance will reflect this change as well.
Buying a House With a Mortgage
Buying a house is usually the largest expense and debt a person in the U.S. will take on. Because of this fact, it’s the most important loan that should warrant a look at your life insurance policy. If your job is paying all, most, or even some of the mortgage, that needs to be taken into account. If you would want your dependents to be able to stay in the same home and avoid a large disruption should anything happen to you, it’s vital to take this expense into account when looking at your life insurance policy.
Taking Out a Loan
While a mortgage is the most common large loan that an individual will take out, there may be other loans such as car loans, student loans, home repair loans etc. that should be considered. While large loans will have more impact, even smaller loans should trigger a review of your life insurance policy. Any money that you are paying back on a monthly basis should be factored into your life insurance amount.
During A Recession
Life insurance is important at any time when the absolute worst situation happens. However, when times are bad in the world and the economy, it becomes even more of a necessity. During a recession, your family’s budget is likely to get tighter. If you were to pass away during a time like this, it would be essential that your family could not only pay the expenses that would come along with your death but also be able to keep up financially overall. Your income during a recession would be even more vital, make sure it would be covered with the correct amount of life insurance.
Going from W2 hourly or salaried job to being self-employed is a big step for many people. If you’ve come to this milestone in life, congratulations! You’re likely already making changes to other items like health and dental insurance, but don’t forget about your life insurance policy! You might have had a policy through your company that will need to be replaced. It’s essential you seek a new policy as soon as possible to prevent a lapse in coverage and the potential risk of leaving your family with no life insurance benefit.
Supporting Your Aging Parents
Taking on the financial responsibility of the aging parent(s) is becoming more and more commonplace in our society. Whether you are just starting to support your parents or plan to support them sometime in the future, it’s essential that you consider how an untimely death might impact them as well as your immediate family.
Keep these events in mind as you navigate through life and the many obstacles and ventures that come your way. Life insurance isn’t always top of mind, but when you have others relying on you, it’s vital to take these policies seriously. Working with a licensed and educated insurance rep will help to ensure you are making the best decision that makes sense for you and your unique situation.
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About Energy Insurance:
Energy Insurance Agency was originally established in 1982 to serve the insurance needs of underserved coal and natural gas companies. Today, we continue to serve those same needs but have expanded our services to include a full range of personal and commercial lines for individuals and businesses.
With more than four decades of experience, Energy Insurance Agency has grown to become Central Kentucky’s largest local insurance agency. By leveraging our carrier relationships, we can provide our clients with exclusive service, knowledge, and pricing. We treat our customers like family and work hard to give them the best possible service available.
We understand the importance of having a policy that will protect you and your loved ones in the event of a loss or emergency. We are committed to providing you with quality coverage at competitive rates so that you can focus on what matters most – your family, your business, or whatever else makes life worth living!