Life Insurance Needs Change as Life Changes


Your need for life insurance coverage is constantly evolving throughout the span of your life. Getting back to the basics, life insurance is designed to support your dependents in the event of your death. But your children, spouse and parents will need varying degrees of financial support over the years. For this reason, it’s recommended that you review and make necessary changes to your life insurance policy every year and after a major life event, such as birth, death, marriage, divorce, significant pay raise or purchasing a home.

Apart from how much coverage you need, you also must consider what type of coverage meets your needs. The two main types of coverage are:

  • Term life insurance: Offers coverage for a pre-determined period of time. Benefits are only distributed to beneficiaries if you die within this term.
  • Permanent life insurance: Offers coverage for your whole life, so long as you continue making payments. Many of these policies also accrue cash value over the years, making it a good option for leaving an inheritance to beneficiaries or transferring wealth to a charity.

Many young individuals and couples select term life insurance because it’s often sufficient for both their needs and budget. Permanent life insurance may be a better option for established families. In some cases, families may purchase term life insurance on top of permanent life insurance to meet a temporary need, such as while their children are attending college.

Another consideration as the years go by is the list of beneficiaries on your policy. For instance, if you name your child a beneficiary and then have another child a few years later, you may wish to add your second kid to your policy.

Note that your life insurance premiums are largely determined by your health. Because people are generally healthier in their 20s and 30s than they are in their 50s and 60s, buying life insurance at a younger age often locks in a lower premium rate.

Contact us at 615-209-9362 for a quote today!

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