Depending on the type of insurance policy you have, you could be covered anywhere between one year and the rest of your life. Of course, depending on if you have term or permanent life insurance. But if you have had a policy for a while, it might no longer be enough.
As your life changes, your insurance needs change with it. Depending on events that have happened and how your mind set has evolved since you first bought a policy, it may be a good idea to make sure you have enough coverage. Here are signs to watch out for.
You Are Thinking About Your Estate Planning
A reason why people get life insurance is to transfer wealth or leave an inheritance. As you get older, you may start thinking more about what kind of legacy you want to leave behind. if you have been focusing on other life insurance needs up to this point, it might be time to take another look to see if you would owe any taxes upon your death or what other expenses your estate might occur. You may also consider whether you want to leave any money behind for your children or a favourite charity.
Your Lifestyle Has Changed
While income increases often come with lifestyle changes, it’s also possible to get a lifestyle upgrade after you have paid debt or improved your cash flow in some other ways. If you notice that you have been spending more than you were a year or two ago, your current life insurance policy may leave gaps between its coverage and your loved ones needs.
That means you are supposed to upgrade your insurance policy to make sure everything is covered. So, go out of your way and compare insurance quotes from different companies to ensure you find the perfect fit.
Final Thoughts
If you happen to come across one of these signs, be sure to use a comprehensive life insurance calculator to see how your needs have changed. In most cases, you won’t be in a potion to increase the coverage on your current policy. Instead, you will buy a new one to supplement the first one.