After a year like 2020, you may be ready to rush right on into 2021. Before you do, remember that this is the perfect time to look back and think about changes in your life. Because a lot can happen in a year, and you want to be certain your life insurance offers the exact coverage you need to secure your family’s financial future.
Not sure where to begin? Ask yourself the following questions as you look back at 2020. Your answers may mean it’s time to update your coverage.
Has your family changed in any way?
Over time, families evolve through marriage, divorce, birth or adoption of children, or even children growing up and moving on with their own lives. As these events occur, you’ll want to review your coverage to make sure it fits your life and financial responsibilities today.
Have you purchased or sold a home?
If you’ve recently become a new homeowner, you’ll likely want to consider increasing your life insurance to help cover mortgage payments. On the other hand, if you’ve downsized or paid off your mortgage, you may be able to adjust your insurance in the other direction.
Do you need to update your beneficiary?
Marriage, divorce or even the death of a beneficiary can mean it’s time to make a beneficiary change. Make sure you review this information periodically to ensure it’s always up to date.
Has your health changed?
If you have improved your health over the past year, you may be eligible for lower premiums. A perfect example is tobacco use. Have you quit smoking since you took out your life insurance policy? If so, you may qualify for non-tobacco-user rates, which will save you money (along with your health).
Has your job or salary changed?
When you accept a new job or your salary changes significantly, that’s a perfect time to reevaluate your life insurance needs. 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 with the number of years you want to replace it: $50,000 x 10 Years= $500,000. This calculation gives you a starting point for helping your family with expenses if something happens to you.
Ready to update your policy? USBA can help.
When you’re ready to rethink your life insurance, contact one of our helpful Product Specialists at 877-297-9235. This is the perfect time to ask questions about any changes to your policy – and to figure out if any of your recent life changes qualifies you for new discounts or reduced rates.
You also can visit USBA.com and use our new Coverage Estimator tool to help you find coverage and rates that are aligned 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.