Around 42% of Americans, or about 102 million adults, feel they need to update their life insurance. Life insurance isn’t something you buy once and forget. Your life keeps changing, and your coverage should change too. Getting married, having kids, or starting a new job all affect your insurance needs.
Big life events change your responsibilities. Your life insurance should always match these changes. Below, you’ll find key moments when you need to review your policy.
Major Life Events That Require an Insurance Update
Your life insurance should change as your life does. Here are four important life events that mean it’s time for an update:
- Marriage or Divorce – Getting married brings new financial responsibilities. Getting divorced might require changing who receives your benefits.
- Having or Adopting Children – Children add more financial duties. You’ll likely need extra coverage to protect your growing family.
- Changing Your Career – A new job or losing one can affect your income. These career changes impact how much coverage you need.
- Buying a Home – Taking on a mortgage is a major financial responsibility. You may need more insurance to protect your family.
But big life events aren’t the only reason to update your policy. Changes in your finances matter too.
Financial Changes and Your Policy
Changes in your money situation directly affect your insurance needs. Here’s how some common financial shifts can affect your coverage:
- Taking on or Paying Off Debt – If you have more debt, you might need more coverage. Paying off debt might mean you can reduce your coverage.
- Preparing for Retirement – When retirement is near, check your insurance policy. Make sure it fits your new plans and goals.
- Receiving an Inheritance or Large Gift – Getting a large sum of money may change how much insurance you need. It might also let you use money elsewhere.
Your health and lifestyle can also affect your life insurance coverage.
Health and Lifestyle Changes
Your daily habits and health affect your life insurance. Some changes might lower your insurance cost. Others help keep your coverage accurate.
- Better Health Habits – If you quit smoking or get healthier, you could lower your premium costs.
- Starting Risky Hobbies – Taking on high-risk hobbies can increase coverage needs. Always inform your insurance company about these changes.
Regular Policy Reviews Keep Your Coverage Updated
You don’t need a big event to update your policy. Regular checks keep your insurance aligned with your current life. Small life changes can add up quietly. Your financial priorities, lifestyle, and family needs can shift without you noticing at first.
Schedule regular policy reviews. They help you find coverage gaps or ways to save money. Regular checks ensure your policy still protects you and your loved ones properly.
Ready to Review Your Policy?
Updating your life insurance doesn’t have to feel complicated. The team at SFM Insurance makes it simple. Whether you recently married, had a child, bought a home, or had financial or health changes, we’re here to help. Updating your life insurance doesn’t have to be stressful.
Let’s collaborate to enhance your coverage. This will protect your future and keep you calm, no matter what life brings. Give us a call today to schedule your policy review.
