Regardless of who you are, it's important to consider purchasing life insurance. However, you might wonder if the life insurance settlement you'd receive would be enough. There are several times when you should consider increasing your life insurance coverage.
After You Get Married
Before you got married, you may have purchased life insurance to provide coverage for funeral expenses. However, after you have become married, this is a good time to review your life insurance policy to determine if you need to increase your coverage. This is especially important if your spouse does not work. Even if your partner does work, a small death benefit is not expensive and will make life easier after you pass away.
After You Have a Child
If you have had a child, you will face increased living costs. However, this won't be as much of a concern if you increase your life insurance premium. You should especially consider increasing your life insurance coverage if you are the sole breadwinner.
When Your Standard of Living Increases
When you see a significant increase in your income, your family may become accustomed to a standard of living that will disappear if you were to pass away. Therefore, when you see a sudden increase in your income, you should consider purchasing enough insurance so you will be able to replace it.
Pay attention to your spending and lifestyle. You may notice your expenses are going up or you may notice that your family is spending more time on vacation. If there is a sudden change in your lifestyle, you will want to make sure your family is able to maintain this lifestyle.
As You Plan Your Estate
As you get older, you may begin worrying about what legacy you will eave behind. In addition to your estate, a life insurance policy will provide you with something substantial to leave behind.
After Buying a Home
If you have recently purchased a home, you may need more life insurance. Paying the mortgage and other associated fees can be difficult. However, with a life insurance policy, you should at least have enough coverage to handle monthly payments.
If you already have life insurance through your employer, there is no reason why you can't have more coverage. For instance, you should consider purchasing a second policy. You may be better off with a mix of policies including whole, term and universal life.