6 Life Events That Should Prompt You to Reevaluate Your Life Insurance Coverage Needs

For many of us, life insurance never even crosses our mind until a major life event occurs. Whether you’re purchasing a new home or starting a family, our financial responsibilities will change and evolve over time. For many, this signals the need for life insurance. In fact, 41% of all life insurance purchases are life event-related. Let’s take a look at life’s most significant changes that should motivate you to reevaluate your financial situation and consider adding life insurance to your portfolio.

New Home Purchase

There are few things more exciting that collecting the keys to your new home. Living the “American Dream”, however, comes with a price. Regardless of what happens in your personal life, the mortgage company expects their payments monthly. Would your spouse be able to afford the mortgage payment, should the unthinkable occur? What about property taxes, home insurance, and regular maintenance costs? Having sufficient life coverage can help ensure your family isn’t uprooted unexpectedly.

A New Baby or Other Dependent

Welcoming a new baby into the world is a time for celebration and hope – perhaps the happiest time in a parent’s life. As you’re picking out paint colors and baby cribs, consider examining your financial health. Are you doing enough to save for your child’s future and how would your strategy be affected should you or your spouse suddenly be removed from the picture? Your children will be your most celebrated accomplishment, as well as your greatest responsibility. Start investing now to ensure they grow up in a stable environment and have everything they need to fulfill their dreams.

Whether you decide to bring a child into the world or not, it’s important to keep in mind that dependents come in multiple forms. Many adults find themselves supporting their parents as they enter their later years. Some move them into their homes, while others help pay for home health care. If you find yourself caring for a family member, life insurance can help ensure your dependents are cared for in your absence.

Tying the Knot

When you tie the knot, your life insurance needs shift enormously. You’ve agreed to share each other’s financial responsibilities and support each other through the ups and the downs. Yet a staggering 35% of Americans express regret that their spouse doesn’t have a life insurance policy. Investing in life insurance offers the peace of mind that he/she is protected in the event of your untimely death.

Open a New Business

Once you become a business owner, you’re exposed to a whole new set of financial commitments. When embarking on such a major life change, it’s important to consider who is at risk were you to pass on unexpectedly. Many partnerships build life insurance into their business strategy, with the agreement that one would buy out the deceased owner’s share of the enterprise upon the co-owner’s death. This policy ensures your family, your business, and your employees are protected, should the unthinkable occur.

Change in Marriage Status

While no one enters into a marriage expecting it to end in divorce, many couples find themselves in a position where divorce is the most healthy option for everyone. Life insurance is an effective way for parents to ensure their children are cared for, even after they’re gone. This is particularly effective in situations where one parent pays child support to their ex, to assist in covering the day-to-day expenses of raising a child.

Estate Planning

Consumers who have an estate large enough to be taxed, either federally or on the state level, should consider the tax benefits of adding a life insurance policy to their portfolio. When set up properly, a life policy could help provide the funds needed to pay down estate tax bills. Many families are forced to sell assets to pay for outstanding medical bills, settlement costs, and estate taxes; a step that could be avoided with the proper life insurance coverage.

Always consult with a licensed insurance professional who can assist in the assessment of your current needs, as well any long-term risks and goals.

Purchasing life insurance is a means towards financial piece of mind. And, while few constantly dwell on an inevitable future, we all have considerations now and then about how things will be different after our departure. The events mentioned above, either joyous or more difficult, often cause a person to pause and think about where things are headed in their lives. If you are approaching one of the aforementioned events, or a similar life decision, this can be the perfect time to look into what it will take to purchase a life insurance plan. Contact an agent and see what they can do for you today.