Life is full of surprises, both good and bad. From welcoming a new family member to navigating unforeseen health challenges, significant life changes can impact more than your day-to-day routine—they can also affect your insurance needs. Taking the time to review your coverage regularly ensures you and your loved ones remain protected from financial hardship, no matter what comes your way. According to the 2024 LIMRA Insurance Barometer Study, while 52% of Americans have life insurance, a staggering 102 million individuals either lack coverage or know they need more. Life insurance is critical, yet myths and misconceptions prevent many from securing adequate protection:
Cost Concerns: 72% believe life insurance is too expensive. However, most overestimate the cost—a healthy 30-year-old can purchase a 20-year, $250,000 term life policy for roughly $200 per year.
Other Priorities: 54% cite competing financial obligations as a barrier.
Confusion: Over half of respondents aren’t sure what type of insurance they need or how much to buy.
The reality is that life insurance is more affordable than many realize, and having the right coverage can provide peace of mind when life throws unexpected challenges your way.
Eight Reasons to Review Your Policy
Changes in your personal or financial situation often warrant a review of your life insurance. Here are eight common scenarios:
You’d Like to Update Beneficiaries
Life circumstances change—whether through marriage, divorce, or other events—making it important to ensure your policy reflects your current wishes.
Your Marital Status Changed
Major life transitions like getting married or divorced can significantly impact your financial obligations and insurance needs.
You Welcomed a Child
Expanding your family increases the number of loved ones dependent on your financial support.
Your Children Are Financially Independent
When your children move out and support themselves, you may want to adjust your policy accordingly.
You Started a New Job or Business
A new income level or business ownership could mean re-evaluating your financial responsibilities and protection.
You’ve Taken on New Debt
Loans such as a mortgage or home equity line of credit are additional financial obligations that life insurance can help address.
You Received a Medical Diagnosis
Costly treatments or care needs could influence the type and amount of coverage necessary.
You Purchased a Home
A new home purchase often brings new financial commitments, making life insurance a key safety net.
Navigating the Challenges
Understanding your insurance needs doesn’t have to be overwhelming. While cost is often cited as a primary barrier, there are affordable options for everyone. If you’re unsure where to start, consider these tips:
Gather Information: Work with a trusted advisor to determine the right policy for your situation.
Assess Your Budget: Life insurance doesn’t have to strain your finances—affordable policies are available.
Plan Ahead: Take the guesswork out of insurance by reviewing your coverage regularly.
Ready to Protect What Matters Most?
If you’ve experienced a significant life change recently, let’s discuss how it may impact your coverage needs. Whether you’re updating beneficiaries, considering additional protection, or evaluating your options, we are here to help. Reach out today to schedule a review or explore policies tailored to your situation.
With the right planning, you can confidently face life’s ups and downs, knowing your loved ones are protected.
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