5 Reasons to Review Your Life Insurance
As we approach the new year, you may be thinking about setting goals, such as getting in shape, losing weight, or starting a new hobby. Another goal you should add to your list is reviewing your life insurance to ensure it still meets your needs. The best way to do that is to look back over the previous year and make note of any important changes that might have occurred. After all, life insurance should not be a “set it and forget it” decision. That’s because, as your life changes, your needs may change.
If you’re wondering what kinds of life events might affect your life insurance, we can give you some ideas. Review the following list as you look back at 2022 to determine whether it is time to update your coverage.
- Your family changed. Over time, the shape and size of families change due to 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.
- You bought 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.
- Your beneficiary is out of date. Marriage, divorce or even the death of a beneficiary can mean it’s time to make a beneficiary change. You should also periodically verify and update your beneficiary’s contact information to keep it current. With USBA, it’s easy to update your beneficiary information—simply log into the Member Service Center and download a Beneficiary Change Form.
- Your health status has 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 could save you money (along with your health).
- You started a new job or got a raise. When you accept a new job or your salary changes significantly, your life insurance needs may change. Expert recommendations for income replacement range from 5X to 10X your current salary. To get started, 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 USBA Product Specialists at 877-297-9235. You can ask questions to find out if any of your recent life changes qualify you for new discounts or reduced rates—or if your existing coverage no longer meets your needs.
You also can use our Life Insurance 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 group life insurance, health insurance supplements, and other products and services to military personnel, Federal employees, National Guard and Reserve members, Veterans and their families.
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