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January 27, 2016

Do You Need to Rethink Your Life Insurance?

life-insurance

Having the right life insurance policy can save you and your family from having to worry about the future.

Our loved ones are the most important things in our lives. It only makes sense that, should the worst happen, you want them to be financially covered when you pass away.

After you purchase your policy, you most likely will never even give it a second thought. In fact, according to a survey conducted by Guardian, nearly 8 in 10 people have never given their life insurance another look after purchasing.

As human beings, our lives and circumstances are bound to change, and our policies should reflect those changes.

If you exhibit any of the signs below, you may need to rethink your life insurance policy.

  1. Your number of your dependents changed. Let’s assume that you get married and buy life insurance and have listed your spouse as your beneficiary. Now, fifteen years later, you have kids. You should add them to your policy as contingent beneficiaries, which make them the backup should something unforeseen happen to you and your spouse. It may not be as easy as simply increasing your coverage on the policy you currently hold. It might actually be cheaper to buy a completely different policy. Be sure to talk to an independent insurance agent who can compare different rates from different companies.
  2. You’ve paid off your mortgage. Let’s assume that you bought your perfect home and took out a 30-year mortgage, along with a 30-year life insurance policy so your family can continue paying it off should you pass away. After using your paycheck(s) wisely, you’ve managed to pay it off in only 17 years! This is great news! The only issue is that you may be paying for an unnecessary life insurance policy. You may want to cancel that one, and purchase a brand new one that meets your new financial situation.
  3. You bought your policy before 2009. What is so special about 2009? That was the year that insurance companies were required to switch to the mortality tables of 2001. Until that year, companies were going off of 29-year-old data. Because of this, premiums are now lower!

To make sure that your loved ones aren’t left with copious amounts of debt and are financially secure after your pass away, contact the professionals at Brewer-Lloyd Insurance Group! Located in Mesa, Arizona, we serve all your personal and commercial insurance needs.