Do you have a life insurance policy? How much do you manage and update it?
Life happens, and change is constant. Often, we obtain a life insurance policy and forget about it. Not managing the policy may pose more danger to your dependents than expected. Regardless of the types of life insurance, updating your policy is critical to help ensure your family is protected.
How Often Should You Review Your Policy?
After you obtain your life insurance policy, it is essential to review your coverage periodically. Periodic review of the policy usually captures important life events or life changes, which may, in turn, prompt you to update or increase your coverage. Risks vary and increase, necessitating more coverage. Significant life changes could also trigger the need to reconsider the type of policy being held and force a change or conversion.
When Should You Review Your Policy?
Usually, significant life events that have a bearing on your life insurance are indicators that it might be time to review your policy. Some of these events include:
- You got married.
- You had a child.
- You changed jobs.
- Your children are now financially independent.
- You’re recently divorced or remarried.
- You bought a new house.
- You took out a new business or student loan.
- You recently refinanced your home.
- Your aging parents need your financial support.
- You or your partner/spouse have had changes to your health.
- Your partner lost his/her job.
This list outlines possible life changes that may affect your policy and trigger a decrease or increase in coverage. It is important to contact your insurance provider to discuss any changes and how they can impact your life insurance policy.
What Happens When You Change Your Policy?
If you have experienced a change that requires you to adjust your life insurance policy, there are usually provisions built into the policy to allow you to review and make changes. To fit your current need, you might choose to increase or decrease your life insurance coverage. You might also be able to convert your coverage to another type of life insurance if it is a better match for you. A licensed insurance agent can help walk you through the process of changing or switching your life insurance policy to ensure it fits your current needs.
Your Life Insurance Policy Could Be Cancelled
Two important things could cause your policy to be canceled. Firstly, if your policy expires and is no longer in effect. If you’ve agreed to a term length and haven’t renewed your policy at the end of your term, your policy will no longer be in force. Secondly, non-payment of your premiums could cause your policy to be canceled. You should subscribe to automatic payments or riders so that non-payment does not become a concern for you.
At Ron Young Insurance, we work with your family to protect you through it all. Our life insurance experts can help you secure quality coverage. Serving Burbank and neighboring cities, contact us for assistance today.