Have you reviewed your life insurance lately?

9/26/2017

Life is full of big moments.

And each milestone also serves as an important time to … review your life insurance needs?

Tim Bemis, insurance services manager at Dupaco Insurance Services, acknowledges that the task is a difficult sell—especially during such happy times.

“They’re life milestones. Nobody wants to think about death,” he says. “That’s why life insurance always gets put on the back burner during these types of events.”

But here are the facts: Even though nearly 90 percent of consumers believe most people need life insurance, less than two-thirds of Americans have a policy in place, according to TermLife2Go. And of those Americans who have some life insurance coverage, 40 percent believe they don’t have enough coverage.

When life changes, so do your insurance needs. In honor of Life Insurance Awareness Month, here are eight milestones worth giving your coverage another look:

Birthdays: Life insurance is age-based. “Every year that we wait to purchase life insurance, the premiums get more expensive,” Bemis says.

Weddings: A marriage brings on new responsibilities. Do you have a life insurance policy to care for your loved one if the unexpected happens? Even if you have coverage, you might need to update your beneficiaries. “A wedding is a commitment to each other,” Bemis says.

New homeowners: When you buy a house, you’re also taking on additional debt and responsibility. Life insurance can help alleviate that burden of debt for those who are left behind.

New job: Employer-sponsored life insurance plans typically are not portable. When you change jobs, don’t forget to evaluate your life insurance needs. “Coverage through work should never be the sole source of life insurance, although it is a great supplement to a good life portfolio at very affordable rates,” Bemis says.

Birth of child or grandchild: Not only is this an important time to reevaluate your coverage, but it’s also crucial to start life insurance policies for children early. It guarantees their future insurability in the event of an unexpected health issue. Children’s life insurance policies can be started for as little as $9 a month, depending on their age. “One of the greatest gifts you can give them is a life insurance policy,” Bemis says.

College-bound: If a college student dies, the parents often are responsible for the balance of the student loans. “Imagine the feeling of being reminded of their loss every month when making a repayment of that debt,” Bemis says.

New or current business owners: Life insurance also can be an invaluable tool for business owners. It can be used to buy out partners or shareholders in a buy/sell agreement when there is an unexpected death of an owner. Another scenario: “Maybe they have a key employee that would be costly for the business to replace?” Bemis says.

Death of a relative or friend: “When you’ve gone through the death of a friend or a relative, you see first-hand the value life insurance adds—or the value it would have added,” Bemis says.