Term Life Insurance Articles
When The Right Time Is To Modify Your Existing Life Insurance Policy
2010-11-22
Life insurance is intended to provide financial assistance to surviving family members upon the death of the insured. The death benefit that is paid out can be used to settle funeral expenses, pay off large debts such as a mortgage or post-secondary education tuition, or to provide future income for a spouse or remaining children. When you purchase a life insurance policy, you don't expect to have it come into effect for several years into the future. Because a life insurance policy could be effective for several decades, it is important to review it regularly and perhaps make some policy modifications.
It is recommended that plan members review their life insurance at least annually just in case anything has changed over the past year. Some policy modifications can greatly affect the premiums in your favor. For example, if you were a smoker when you originally purchased your insurance policy, then chances are you are paying a high premium. However, if you quit smoking and remain smoke free for at least a year, you can apply to have your policy reviewed and possibly have your premiums decreased.
Major life changes can also impact your life insurance policy as well. If you get married or have a child, you will want to add your spouse and children onto your policy or have a separate policy issued for them. You may also want to increase the face value of your policy in order to provide an adequate amount of financial assistance in case you pass away. If you originally purchased a policy for $50,000 when you were single, and then you get married and have children, this amount may no longer suffice.
The opposite also applies. If you purchased a term insurance policy to cover large debts such as a mortgage or college tuition, you may want to consider reducing the face amount of your policy once your mortgage has been paid off and your children are finished school. You no longer need such a large amount. You may want to reduce your policy to an amount that will ensure that your funeral expenses are paid off and family members do not have to worry about paying for them out of pocket.
If you review your life insurance policy on a regular basis or whenever you experience a major life changing event, you will never have to worry about whether or not you have adequate coverage to satisfy your needs and the future needs of your family. You can make policy modifications at any time, depending on the type of policy you have, and this will ensure that your policy is always up to date.
Free Insurance Quotes
Life insurance is intended to provide financial assistance to surviving family members upon the death of the insured. The death benefit that is paid out can be used to settle funeral expenses, pay off large debts such as a mortgage or post-secondary education tuition, or to provide future income for a spouse or remaining children. When you purchase a life insurance policy, you don't expect to have it come into effect for several years into the future. Because a life insurance policy could be effective for several decades, it is important to review it regularly and perhaps make some policy modifications.
It is recommended that plan members review their life insurance at least annually just in case anything has changed over the past year. Some policy modifications can greatly affect the premiums in your favor. For example, if you were a smoker when you originally purchased your insurance policy, then chances are you are paying a high premium. However, if you quit smoking and remain smoke free for at least a year, you can apply to have your policy reviewed and possibly have your premiums decreased.
Major life changes can also impact your life insurance policy as well. If you get married or have a child, you will want to add your spouse and children onto your policy or have a separate policy issued for them. You may also want to increase the face value of your policy in order to provide an adequate amount of financial assistance in case you pass away. If you originally purchased a policy for $50,000 when you were single, and then you get married and have children, this amount may no longer suffice.
The opposite also applies. If you purchased a term insurance policy to cover large debts such as a mortgage or college tuition, you may want to consider reducing the face amount of your policy once your mortgage has been paid off and your children are finished school. You no longer need such a large amount. You may want to reduce your policy to an amount that will ensure that your funeral expenses are paid off and family members do not have to worry about paying for them out of pocket.
If you review your life insurance policy on a regular basis or whenever you experience a major life changing event, you will never have to worry about whether or not you have adequate coverage to satisfy your needs and the future needs of your family. You can make policy modifications at any time, depending on the type of policy you have, and this will ensure that your policy is always up to date.
