Life insurance is a must-have for virtually all adults. It ensures end-of-life arrangements can be made without significant financial burdens to surviving loved ones. More importantly, it provides economic support for family members to compensate for the loss of income. Here are several times when you should reevaluate your life insurance policy.

When to Revise Your Life Insurance Policy

1. Family Growth

Whether you become serious with a longtime partner, get married, or have children, family growth is an important development that calls for a life insurance update. Having dependents means that people rely on your financial contributions for paying bills. Increasing your policy will provide peace of mind as your family grows by ensuring there are sufficient funds to cover the cost of living for all your dependents. 

2. Career or Income Changes

A good rule of thumb to remember is that your life insurance policy should amount to at least seven years of your salary. As you advance in your career, it makes sense to update your benefit amount as your pay also increases. 

This is also true if family dynamics have shifted; for example, if one partner is staying home with children and the other is working, consider revisiting policies for each individual to determine appropriate policy amounts. 

3. New Financial Obligations 

If you’ve purchased, started a business, or taken on any other long-term financial obligations, the added financial responsibility calls for a revision to your policy. You may need to increase your plan so it covers all financial commitments. This will prevent other individuals from facing economic strain, especially if you have joint debt with a spouse or business partner.

No matter your current circumstances, it’s never too early to have the peace of mind of life insurance. If you live in the Lorain, OH, area, turn to Kelley Agency for life and health insurance options catered to your specific needs. This independent agency offers the best policies from leading carriers and can find the perfect plan to suit your priorities. Request a quote online or by calling (440) 282-8898.