Web Content Viewer

Actions

When Should I Change My Life Insurance Policy?

Oct 28, 2019 4 min read Nancy Mann Jackson

Key Takeaways

  • You should consider changing a life insurance policy as your life situation changes.
  • Major life milestones such as getting married and becoming a parent are ideal times to reconsider your policy.
  • You can make different types of changes to your policy, such as changing the beneficiary, benefit or term.

 

 

As you move through various life stages, your needs for life insurance will be different. That's why experiencing a life milestone or a change in family dynamics is often an appropriate time to consider changing a life insurance policy.

  • Getting married. When two people start a new life together, they often want to ensure that their spouse will be taken care of in the event of a tragedy. If you've had life insurance as a single person, it may have only been enough to cover your personal funeral expenses. Now, with someone else to consider, it may be time to change that policy to help support your spouse in the event of your death.
  • Buying a home. For most people, purchasing a home means committing to a mortgage payment for a number of years. If you're responsible for your mortgage payment, you probably want to adjust your life insurance policy to make sure it would cover that responsibility in your absence and free your family of that burden.
  • Becoming a parent. When you become a parent for the first time, your priorities shift into new focus. Suddenly, you have another person to include in all your plans — and that includes your life insurance policy.
  • Growing your family. As you add more children to your family, you may need to add more life insurance to ensure that all those you love would be supported in the event of your death.
  • Starting over. Losing a spouse to death or divorce, getting remarried and taking in stepchildren, and other new starts in life are all occasions that may warrant changing a life insurance policy.

 

What Components should change?

When your financial responsibilities shift over the course of various life events, it's worth taking a look at the specifics of your life insurance policy to make sure it can still accomplish your coverage goals. If your family circumstances or needs are different than they used to be, consider adjusting one or more of these components of your life insurance policy.

Beneficiary. The beneficiary, the person who will receive the life insurance benefit in the event of your death, may need to be altered along with your current family situation. For instance, if you're getting married, you may want to add your new spouse as beneficiary. On the other hand, if you're getting divorced, you may want to remove your ex-spouse as beneficiary.

Type of coverage. If you have term life insurance, which lasts only for a specific amount of time, such as 20 years, you may begin to see that you'll still need life insurance after that term is complete. For instance, if your term was set to end when you're 50 but you've remarried and now have young stepchildren in your forties, you may consider switching to a longer- term policy or to a permanent life insurance policy.

Benefit. Family dynamics progress over the course of time, so there may be cases where you'll want to update the benefit amount of your life insurance policy. For example, if you support a non-working spouse and three children, you likely need a larger benefit than if you and your spouse are both working and you have no children.

As life happens and your circumstances change, your life insurance policy can change right along with it. Take the time to honestly assess your needs and the needs of those you love, and talk with your life insurance provider to update your policy to fit your situation.

 

What you can do next

If you think it might be time to reconsider your life insurance policy, review your copy or call your insurance agent to discuss. Think about the current and future needs of your family and dependents. If your current policy doesn't seem to match those needs, talk to your financial professional about how you could tweak the policy to better serve your life situation.

For Compliance Use Only:1027543-00001-00

If you secure tomorrow, you can enjoy today.

Help make sure your loved ones are protected if something happens to you, with Prudential Life Insurance.

Get a Free Quote

Web Content Viewer

Actions

Find What Interests You


Web Content Viewer

Actions

Web Content Viewer

Actions

Web Content Viewer

Actions