Big Life Changes that May Affect Your Insurance

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As we age and reach different milestones in our lives, our insurance needs change. In order to ensure adequate coverage, contact us if you’re affected by any of the following life events:

  • Marriage—When your marital status changes, so do your insurance needs. Marriage typically leads to the combination of households, vehicles and other property, so it is critical to update your insurance policies accordingly. What’s more, life insurance is vital to married couples as it can ease the financial burden in the event of a sudden death of a partner. Ask about discounts on car insurance for married policyholders.
  • Buying a Home— Purchasing a new home is perhaps one of the largest financial commitments that you'll ever make—one that you will want to protect. After purchasing a home, ensure that you have homeowner’s insurance to protect against things like fire, weather damage, theft, vandalism, and accidental damage. This advice also holds true if you are buying a new condo or vacation home. You’ll also want to consider life insurance so that if you or your spouse were to die, the other would have the necessary replacement income to pay the mortgage, keep the home, and maintain a similar lifestyle
  • Home renovations—Once you own a home, you may want to make updates to create a better living space. Be sure to report major home improvements to your insurance company to protect any increased value to your home. 
  • New children—Having or adopting children is not only a huge life change, but it’s also a major financial commitment. As such, it’s important to purchase the right policy to secure your child’s future. Add your child as a beneficiary on any life insurance policies, and make sure your coverage is sufficient.
  • Teenage drivers— Teen drivers often carry the highest risk of auto accidents. While you want your teen driver to remain safe on the road, costly accidents can happen without warning. Consider adding your teen driver to your auto policy, as it is generally cheaper than purchasing a separate policy.
  • Starting or selling a business—If you’re an entrepreneur, there will likely come a time when you will either buy or sell your business. During these times of major change, the proper coverage is crucial.
  • Valuable purchases—A standard homeowner’s policy has limited coverage for highly valuable items. Supplement purchases and gifts that exceed the policy’s limits with a floater—a separate policy that provides additional insurance.
  • Retirement—When it comes time to retire, understand that you will no longer have access to your employer’s coverage. The stakes will also be higher because you want to ensure that if you die, your spouse and family will have adequate financial support, whether from your retirement savings, a life insurance death benefit, or a combination of the two. You also may change residences, so it is a good time to let your insurance provider know where you plan to spend your time.
  • Accepting a pension— Speaking of retirement, if you’re fortunate enough to have a pension plan, you will be faced with the decision of whether to accept the full pension or a reduced spousal benefit. Do not take the spousal benefit before speaking with a life insurance agent. Using a strategy called pension maximization, you might be able to supplement your pension with life insurance and accept the full payout while still providing financial protection for your spouse and family.

Insurance is critical for nearly every stage of life. Seeking coverage should be an active process, and you shouldn’t assume that your insurance needs remain steady over time. We’re here to answer any questions you may have as your needs change, just send us a message.