For some reason, some people think that after buying life insurance, there is no need to make adjustments as time goes on.
Buying life insurance is a one-time affair, but constant review should be done regularly in order to make the policy adjust with the change of events and provide you the needs in your financial planning.
Change of Lifestyle
Some insurance plans offer benefits that go concurrently with the changes in your lifestyle. You will be offered a high premium if you’re a heavy drinker or smoker as you are posing lots of threat to your health. Some insurers offer a review for life insurance once there is a change in lifestyle that affects your premium. Deciding not to review your life insurance is one of the biggest misconceptions in the insurance market. Endeavour to review your policy and keep it in line with the significant changes in your life. These are the points in your life when you should visit your adviser for a review.
Change in Marital Status
You now have someone who may be dependent on you, hence the reason why you need to review your life insurance. You and your partner need to purchase life insurance that will cover each other during the time of unforeseen circumstances and additional responsibilities such as child expectancy, car loan and mortgage loan. You won’t want your wife to be denied the financial protection should anything happen to you and you will no longer be around to provide for him/her. During a review, list him/her as your beneficiary so that the proceeds will go rightfully to your spouse.
Having a Child
There is no definition of the joy a baby brings to a home. Though it calls for a huge celebration, this also calls for your attention to review your portfolio. A new baby means an additional member to your house and this translates to an additional responsibility for you to shoulder, including the cost that comes with a child such as education fees and their daily expenses.
You should make plans during a review on how to provide their daily requirements even when you are no longer around. Take up the right policy that will cover these costs and provide for your children comfortably.
Career Advancement
Some company offers medical insurance coverage to their employees. Your employer may fall into this category of company owners. However, once you leave the company, you are no longer entitled to this coverage.
In a situation whereby you are promoted in your current work of place, you should immediately review your life insurance policy. Higher income consequentially means higher tax payment.
Take proactive measures and make a meticulous review of your life insurance policy that will tailor to the current state of events in your life.