Your life insurance needs and life events.

When people buy life insurance they often forget about it, not realizing that as their life changes so do their coverage needs. You may need more. You may need less. You might benefit from a different type of policy.

It’s really a good idea to ask yourself “What has happened in the past year that changes my life insurance?”  (If you don’t have coverage, and you have people who depend on your income, it’s time to get life insurance.)

Think about the following scenario: You change jobs or start a home based business. Maybe you were already getting some life insurance coverage from your employer as a benefit. When your employment ends, most likely so does that coverage. If you factored that in as part of your total life insurance coverages, you may not have enough for your family’s needs.

Another common scenario happens when a couple has a child. That can be a busy time, and life insurance may be the last thing new parents are thinking about. But now there is an extra person depending on your income.

At the opposite end, if you have an adult child who becomes financially independent or you pay off a mortgage, you may not need as much protection.

So many life events can change your life insurance needs: moving an elderly parent into your home, getting a promotion, taking out a second mortgage.

If you think your needs have changed, talk to your agent but also take a few minutes to compare term life insurance quotes to see if you can lower your costs. You should get at least three different quotes.

Also, keep in mind that sometimes it might be just as affordable to get a little more coverage. For example, if you determine you only need $230,000 of coverage a $250,000 policy may cost the same.

You may also be interested in seeing what different types of life insurance are available that can help you reach your financial goals. For example, you can compare whole life insurance vs term.