Why is it important to review my life insurance?
Why should I review my life insurance?
- You may not have enough.
Some people buy life insurance in their 20s, and then forget to review it when their life changes. For example, if you have a new baby you may not have enough insurance to protect your new family. You may also need more insurance if you care for aging parents.
- You may have too much.
As you get older, you may have fewer people depending on you financially. If you’ve recently lost a spouse, you may not need as much insurance now that you’re on your own.
- You may lose track of how much you have.
Early on, many people buy the cheapest insurance they can get. A few years later, that same insurance may not be the best choice. Also, life insurance has changed a lot in the last few years. There may be new features or new policies that better fit your needs than what you bought five years ago.
- You may have the wrong kind of insurance.
Early on, many people buy the cheapest insurance they can get. A few years later, that same insurance may not be the best choice. Also, life insurance has changed a lot in the last few years. There may be new features or new polices that better fit your needs than what you brought five years ago.
- You may miss out on new ways to plan for your financial future.
The first reason most people get insurance is to provide money after their death to help support their loved ones. Later on, you may want to use insurance for other things like, reducing taxes or building savings.
- The money from your insurance may go to the wrong person when you die.
You need to review your policy from the time to the time to be sure the right person is named as your beneficiary. For example, if you’ve remarried since you got your insurance, you may want the insurance money to go to your new spouse. If you’ve lost your spouse, you may now want to name someone else.
Remember your insurance needs change as life changes. Be sure to review your insurance as part of your yearly financial checkup.
– The Globe And Mail