09/01/2020

4 Changes That Affect Life Insurance

If you’re like most, your world can change very quickly. Growing up can lead to major life events, and you’ll want to have the right Life Insurance to match. Whether you already have coverage or are thinking about getting it, check out these four life changes that could impact how much Life Insurance is needed. 

Marriage/Divorce

Getting married is exciting, but it can also prompt changes to a Life Insurance policy. For example, you may decide to designate your spouse as the beneficiary. Having Life Insurance in place is a way to economically protect each other’s future. Additionally, going through a divorce can be a difficult time and can also prompt changes. You might consider changing the beneficiary on the policy or designating the policy to cover child support payments.

Children

As a family grows, there are many changes that could affect a Life Insurance policy. Consider adjusting the policy to pay for daycare, save for college or other child care expenses. Updating or obtaining Life Insurance when having children could ensure your family has the resources to maintain a home, costs of child care, schooling and more. Additionally, if your child is now an adult and financially independent, a reduction in coverage may be possible.

Mortgage 

Paying off a mortgage can lead to a decrease in living costs and thus may reduce the amount of Life Insurance needed. Alternatively, a higher mortgage on a new home could mean an increase in the Life Insurance policy is needed. Adjusting this coverage can ensure your family has financial help to maintain mortgage payments should you no longer be able to provide your source of income due to death.

New Job/Promotion

A new job or promotion could mean an increase in salary. If the higher earnings help you afford an upgraded lifestyle, you may want to reevaluate Life Insurance coverage to ensure your family can afford the lifestyle they’ve become accustomed to. If you were depending on a policy through a former employer, you may be able to keep that plan or replace it with one from a new workplace.

If you have Life Insurance or are thinking about obtaining it, contact an OKFB agent to talk through options. Our Life Insurance calculator can be a great tool to help understand the amount of coverage that is right for you! Remember, Life Insurance is about ensuring your loved ones are financially secure.

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