4 Times When It’s Necessary to Re-Evaluate Your Life Insurance Coverage
As you and your family grow older, there are many expected and unexpected life moments that might make you re-evaluate not only your investment strategy, but also how you’re protecting your family. Many people have questions about when to get life insurance or ask, "Do I need life insurance?" The below events could lead you to add life insurance coverage, change the type of coverage, or lessen your coverage in favor of a different investment vehicle. Here are some life events that might warrant another look at your coverage:
When to Get or Change Your Life Insurance Coverage
1. Another Baby
When you have a child, it means another person to provide for and care for if something unexpected happens.
Going through a divorce can have major financial implications on your wealth as assets are divided up. Life insurance is an asset that is often overlooked in divorce. Keeping life insurance in order protects the financial interests of both parties and their dependent children.
3. A Sudden Shift in Assets
Congratulations, you just got a promotion at work. Or perhaps you’ve come into an inheritance and stand to gain substantial financial assets. Maybe the unfortunate has happened and you’ve lost your job due to unforeseen circumstances. Whenever there’s a sudden shift in your assets, it’s worth re-evaluating every aspect of your portfolio, including your life insurance.
Beyond the death benefit, life insurance can also help you in retirement planning, so you can have enough savings opportunities to meet your long-term goals. The cash value built over time in many life insurance policies can provide an additional source of income for retirement and other expenses.
This article is not an endorsement of any particular product, service or organization; nor is it intended to provide financial, tax or legal advice. It is intended to promote awareness and is for educational purposes only.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.
1 Source: John Hancock Insurance. How Much Life Insurance Do You Need? Calculator.