Purchasing life insurance is an important step in protecting your loved ones if something happens to you. If you pass away, this coverage provides a specific benefit to your beneficiaries—such as your spouse or children—to help cover financial losses. But since circumstances can change throughout your life, you may find that specific terms should be updated periodically. To ensure your policy accurately reflects your wishes, here are five common instances when you should review your life insurance plan. 

5 Times You Should Review Your Life Insurance Policy 

1. Death or Divorce

When a beneficiary dies before you pass away, your life insurance benefit will be distributed to other beneficiaries upon your death. If that’s not how you would like these funds to be handled, it’s important to update these names appropriately. 

Similarly, if you get divorced from a spouse listed as a beneficiary, they will still be entitled to the benefit. If you no longer want them to receive these funds, revise your life insurance terms. 

2. Growing Family  

Your life insurance benefit will go to the individual(s) listed as beneficiaries on your policy—not necessarily those who are considered your next of kin. As such, if you get married or have a child, you will want to ensure these new family members are appropriately listed as beneficiaries.

3. Salary Increase 

If you end up earning a higher salary and adopting a new standard of living, the benefit attached to your life insurance policy may no longer accurately reflect your family’s financial needs. When this happens, consider increasing the benefit amount on your policy. 

4. Home Purchase 

Buying a home comes with many long-term costs—including the mortgage, property taxes, and home insurance payments. If you are responsible for all or some of these expenses, you’ll want to make sure your life insurance benefit covers them if you no longer can. 

5. Improving Health 

Typically, the premium amount you’ll pay for life insurance is based upon several factors—including your overall health profile at the start of the policy. For example, having a serious condition that increases your risk of death can lead to higher premiums. However, if your health improves, you may be able to update your policy and reduce your premium amount.

Figuring out the specifics of life insurance isn’t a task you have to face all on your own. Instead, you can turn to the trusted professionals at Fred Haight Insurance Agency. Based in Muir, MI, this agency provides a wide range of coverage options—including term and whole life insurance policies tailored to the client’s specific needs. As an independent agency, they also work with multiple providers to ensure you get optimal coverage for the best price. For more details on these solutions, visit this team online. To get a custom insurance quote from a friendly agent, call (989) 855-3341.