Life insurance provides financial protection for families. It gives you the knowledge that your loved ones will have financial support should you die. Many people purchase life insurance and forget about it. After all, it is not something you want to think about too often.
Yet, buying it at a young age and not updating it often leads to situations where you do not have the right coverage. This is especially true of employer life insurance plans. They may not be enough.
What Does Your Employer Offer?
Many employer-sponsored life insurance plans are a flat rate. Everyone gets the same amount. For example, your employer may offer a $100,000 policy. Some offer even less. But, is that enough to meet your family’s needs?
- Determine how much your family spends every month on mortgages and other types of loans.
- Determine if you would like to pay off your home or other debt in total if you were to die suddenly.
- Did you want to pay for your child’s college education or leave money for other purposes? How much will this take?
If these things are important to you, that $100,000 policy just may not be enough. It may be necessary for you to have more coverage.
Is Your Life Changing?
Next, think about your life as it is right now. When you started that job and received that $100,000 policy, did you have the same types of debts and obligations? Here are a few more things to consider:
- Have you had children?
- Perhaps you bought a home and now have more expenses.
- Have you moved or changed where you live to an area that may be more expensive?
Your goals may change over time, too. All these individual factors play a role in how much insurance you need. It may change over time, too. Adding children is one change. As they get older, marry, and move out, you may no longer need to provide for their financial needs. As these changes occur, your life insurance policy should follow suit.
Work closely with your Downington life insurance agent. Learn about the options available to you with more financial coverage. You may find it is very much possible for you to secure the financial support your loved ones need. Extending your life insurance does not have to cost a significant amount. But, it is important that the value matches your life.