Your life insurance needs can change many times in your life, so it’s important to know when it’s the right time to take stock of your current life insurance coverage. We have compiled a list of four good reasons to consider re-evaluating your life insurance.
#1: There’s been a change in your job or salary.
If you recently took a new job or your salary has changed, you may need to re-evaluate your life insurance policy. A new job could mean changes in your current lifestyle, and your life insurance coverage should reflect that and be able to help your family with expenses should something happen to you. Expert recommendations for income replacement ranges from 5X to 10X your current salary. To get started, you can simply multiply the salary you want to replace X the number of years you want to replace it: $50,000 x 10 Years = $500,000.
#2: There’s been a change in your family.
A good time for life insurance re-assessment is when there are changes in your family status. Whether it’s getting married or divorced, having children, or your children becoming adults and starting their own journeys, it’s important to be sure your coverage adequately covers your entire family, should the unexpected happen.
#3: Your health has changed.
Positive changes in your health and lifestyle may also affect your life insurance, in a way that’s healthy for your wallet and budget. For example, if you’ve stopped using tobacco since you originally took out life insurance, you may qualify for lower rates as a non-tobacco user.
#4: You’ve recently bought a house, or downsized.
To better protect your investment and the future for your loved ones, you’ll want to assess your life insurance needs in the case of your unexpected death. This protection can help family members with future mortgage protections and payments. If you have owned your home for a longer period of time or have downsized or paid off your home, the amount of life insurance you need may have changed.
Re-evaluating your life insurance needs is easy – USBA can help!
USBA is here to help you meet your changing insurance coverage needs. Contact one of our helpful Product Specialists today at 877-297-9235 or visit USBA.com and use our new Coverage Estimator tool. This handy tool can to help you find coverage and rates that are in line with your current stage of life.
USBA is a not-for-profit Association that provides budget-friendly life insurance, health insurance supplements and other products and services for military personnel, Federal employees, National Guard and Reserve members, Veterans and their families.