10 Reasons to Think About Increasing Life Insurance Coverage

The only constant in life is change. Your life today probably looks a lot different than it did a decade ago. At that time, you may have been in college, moving out of your parents' house to live on your own. Now, you're a parent yourself, welcoming a new life into the world.

Just as we change over time, so do our needs for life insurance.

For that reason, it's important to periodically review your life insurance policy to ensure it still meets your family's needs.

Is it enough coverage to help cover immediate costs (funeral, medical expenses, everyday bills) and future expenses (college for a child or assisted living for an aging parent)?

10 Reasons Why You Might Increase Your Life Insurance Coverage
or Change Life Insurance Policies

• 1. You've gotten married.

  You share appetizers, last names and sink space. But you'll each need your own life insurance policy, in order to ensure the other person would be taken care of financially should one of you pass away.

• 2. You've bought a house.

  When your expenses increase, it's a good time to reassess your life insurance coverage. Why? If you passed away, your loved ones may need additional funds to cover new costs, such as a mortgage payment. Otherwise, the co-signer on your mortgage would be solely responsible for covering the full bill if you were no longer here.

• 3. You just had your first (second, or third) child.

  Congratulations! Your house is filled with even more love, laughter, and perhaps a few more fingerprints on your sliding glass door. As your family grows, you may also want to consider increasing your life insurance coverage. The more people who depend on your paycheck, the more coverage you'll likely need.

• 4. Your health status has changed.

  Maybe you have a term life policy that's set to expire. However, since you bought the policy, your health has changed. Now, you may need to consider other options, such as Guaranteed Issue Life Insurance, which doesn't require a health exam for approval, as long as you meet the age requirements (50 to 85 years old).

• 5. A family member has been diagnosed with an illness or condition.

  Your spouse or child has developed an illness or condition that may require longer-term care. By increasing your life insurance coverage, you can help to ensure they're able to pay for medical costs, even if you're no longer here to do so.

• 6. You have an aging parent in your household.

  Your parents always took care of you growing up. Now, it's time to return the favor. If an aging parent has recently moved in with you or has moved into an assisted-living facility that you help to pay for, you may want to consider increasing life insurance coverage. That extra money could help them to continue living comfortably, even if you unexpectedly passed away.

• 7. Your group policy from work is no longer enough.

  Group life insurance policies typically provide a base amount of coverage, such as 1-1.5 times your salary. Depending on your unique situation, that amount may not be enough to cover your family's needs. Additionally, if you leave your job, you may lose your coverage. A personal life insurance policy might provide you with greater coverage, ensuring your family's needs would be met if the unthinkable happened.

• 8. Your paycheck has increased.

  You're making more money now than when you first bought your policy (which is never a bad thing). Maybe you bought less coverage at that time because it was all that you could afford. Or maybe your family has gotten accustomed to a more lavish lifestyle — and you want them to be able to sustain it, even if you were no longer here. For all of these reasons, it might be a good time to increase life insurance coverage.

• 9. Your partner is no longer working.

  For years, both you and your partner have enjoyed successful careers. But now, you're having a baby and your spouse will be staying home to take care of him or her. Even if you're the breadwinner, it's still important for both of you to have a life insurance policy — and enough coverage to take care of your family's needs if one of you passed away.

• 10. Your term life policy is approaching its expiration date.

  At the end of your term, you may have the option to continue coverage or convert to a permanent (whole) life policy, without taking a medical exam. Why might you want to make the switch? Maybe you decide that you want coverage for life or you're interested in building cash value. As you're approaching the end of your term, reassess your family's needs and make sure that your life insurance policy still meets them.

Need help determining how much coverage is enough? Use our free, term life insurance calculator or request a quote from one of our licensed agents.