Life insurance is often an aspect of financial security that people put off. Even when they do not, many do not consider the possibility that they will need to change their level or type of coverage as their life situations change. PHP Agency realizes that this is a mistake as there are many life events that can impact someone’s insurance needs. Here, PHP Agency reviews a few of the most common reasons that people may evaluate (and potentially change) their insurance.
Marriage
When couples marry, join a civil union, or become life partners, most likely both individuals work towards contributing to a household. This means that, should one person die, the other could quickly become responsible for handling many financial obligations. People typically evaluate their insurance needs when they find their life partner because such coverage could help the surviving partner maintain their quality of life and pay their financial obligations. Death benefits paid out through life insurance policies can be used for responsibilities such as mortgage, car loan, student loans, and debts.
Income Growth
Term covers are often based on a couple’s household income, which is meant to help support your family’s lifestyle after your death. Because of this, it is important to review and perhaps increase your health and term cover if you experience a significant income growth. Increasing the cover for health and life insurance plans can help ensure that your family has support in your absence, preventing damaging financial situations that could arise if your current coverage does not reflect your new income.
Purchasing First Home
Many couples prepare for purchasing a home for a while, and it can be daunting to evaluate everything that is needed to ensure financial stability should a partner pass away. After all, mortgage is more than likely a couple’s biggest debt, and insurance, property taxes, and upkeep certainly contribute to the costs of home ownership. Life insurance can help make sure that a surviving partner can afford to keep the home should an unexpected event befall their family. If there is no joint homeowner, life insurance can help make your property an asset for your loved ones rather than become a foreclosure.
Having Children
Having a child, either through birth or adoption, certainly changes a couple’s finances. Most parents will have a reflective moment where they realize that they must do everything possible to provide financial security and protection to their children. Life insurance is one tool that can help a parent ensure their children’s safety should the unexpected happen. Death benefits that are paid if life insurance needs to be used can be used to cover a child’s needs and help them maintain a financially secure future.
Retirement
There are a lot of things that an individual should evaluate when it comes time to retire, and life insurance is no exception. One of the interesting things about evaluating insurance needs during retirement is that there are many different scenarios that will impact one’s needs. For example, some retirees see their permanent life policies as a potential source of retirement income source. Retirees with grown children and a partner with enough income may decide they no longer need their insurance policy. Others may wish to keep their life policy to help their heirs pay legal fees and taxes associated with their estate after their death.
