If you have life insurance, you may figure that you’re all set and are fully protected. As you go through the motions of life and things change your life insurance coverage needs to change to. Many people think that once life insurance cover is in place, that they never have to think about it again. That they will be protected in the event of the unexpected. But here are a few reasons why you may want to rethink your current amount of life insurance cover:
If you get married and/or start a family, your partner and your children are your biggest assets to protect. Life insurance cover prior to marriage and children, may not be enough to protect them.
Life insurance cover should be assessed if you were renting and now you own a home. A home is more expensive to maintain, plus there’s also the mortgage payment that goes along with it. Would your family be able to continue to afford to stay in the home, if something happened?
Actuaries Rice and Warner recently found that only 61% of Australians have enough life insurance to pay for non-mortgage debts.
In addition to life insurance cover, there are severe illnesses such as having a heart attack or developing Alzheimer’s disease that may prevent you from working and bringing money into your family. These diseases may also lead to premature death.
While you may realise that any or all of these situations may require you to reevaluate your life insurance cover needs, what you may not realise is that figuring out the right kind of coverage for your specific situation isn’t that simple. With the advances of technology, many people are deciding to go online to research life insurance options. The risk with this is that no two people are alike and therefore, life insurance cover needs to be different for everyone.
The best thing that anyone can do to determine if their current life insurance cover is adequate is to talk to a qualified financial planner. Working with a planner will help you determine the amount needed and it will also help you stay on top of things when you go through one or more events in life that may require your cover to change.