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Your life insurance needs can change at different stages of life. There are several times in your life when you will need to consider how much life insurance you need. The following tips highlight some of the more common life stages that warrant a review of your policy.
Tip: Consider How Much Insurance You Need When…
• You are shopping for a policy. It is important to identify your financial goals when buying a policy. Use these goals and a life insurance calculator to be sure you are opting for adequate coverage.
• You marry. Your needs and goals are likely to change when you begin building a life with a spouse. Talk together about those needs and goals when deciding what changes should be made to any current policies. Have current policies on hand when you talk with your life insurance agent.
• You become a parent. Children add another layer of financial concern that must be addressed in your life insurance policy. When deciding how much life insurance you need try to anticipate your child's needs. You will likely want to have enough coverage to meet your child's needs (such as educational expenses, housing, etc.) until you anticipate they will achieve financial independence.
• You divorce. Here again your concerns, and in some cases obligations, can shift. Review your policy at this time and make changes that reflect those shifts.
|Jennifer Mathes, Ph.D.|