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Topics On This Page:
Just Married
Most newly married couples forget
about one of the most important plans they will
make for their future. Consider updating your
coverage amounts to assure your spouse’s
financial security.
Update your beneficiary information
in all of your insurance policies, including policies
purchased through your employers and ones you
purchased on your own. Be sure your new spouse
is named, or they will not be considered, regardless
of what is stated in your will.
Home Ownership
Life insurance can provide a means
to pay off a mortgage, should you or your spouse
die. It can also provide a means to continue the
property taxes, utilities, maintenance and insurance
that you are obligated to carry on the home.
Divorce
If a divorce has made you the main
breadwinner for one or more dependents, you may
need a bigger life insurance policy. You may also
want coverage on your former spouse or have them
legally obliged to carry insurance if you rely
on them for child support. You may also want to
change the beneficiary on your life policy if
your spouse was named.
Parents
Children are our pride and joy.
They are also our biggest responsibility. Remember
to take into account an education fund, supplemental
income to provide for them while under age 18
and food and clothing expenses.
If your spouse is primary beneficiary
of your policy, you may want to designate your
children as secondary beneficiaries.You may also
want to have wills that name guardians for your
children and a trustee to manage the life insurance
money for them.
It is also important to have life
insurance covering your children, should the worst
ever occur.
Changing Careers
In today’s fast-paced environment,
it would not be unusual to think about changing
your career. If you are covered by group life
insurance, it may not remain in-force when you
leave your job. Find out what will happen if you
leave your job: can you convert your group policy
to an individual policy? If so, how do you complete
the conversion? Will you need a physical to continue
the policy? If you have to pay for converting
the coverage, would it be better to buy new coverage?
Retirement
Remember, any employee sponsored
group life insurance probably won’t remain
in force when you retire. Ask yourself the same
questions listed above for “Changing Careers.”
These concerns apply to you, too.
Take the time to think about whether
your financial responsibilities will change. Will
you still have dependent children? If so, will
your savings and/or investments provide a comfortable
standard of living for your spouse and dependents
after your death? If not, you will need to maintain
or maybe even increase your current insurance.
If your children are grown and
you have paid off your mortgage, you may want
to consider reducing the amount of insurance you
carry.
Next
» Conclusion
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Major
Life Changes