Change is Constant in Life
One thing that is a constant in life is change. Our bodies change, our health changes, our income changes, our family size changes, our friends change, cars, homes and so much more. When it comes to your life insurance, your priorities and needs may have changed significantly since the time you purchased your life insurance. There are so many variables to consider when buying life insurance and it is safe to assume there are many new factors to consider when evaluating your current coverage. Now may be the time for a life insurance check-up!
What might a young family need?
A young couple, with small children and a mortgage, have much to look forward to over the next 20 years. Most likely the kids will grow up, graduate high school and consider technical school or college. The cost of a higher education is very expensive, even if there are grants and scholarships, and hopefully mom and dad have set up the base with a college funding plan. But all that can come crashing down if one of the parents dies unexpectedly and the burden of the mortgage, family expenses, and the college plans, all fall to the other parent. In this care, a 20-30-year term product, to pay off the mortgage, help with income protection and a college fund, would be a reasonable starting point for insurance protection.
Now 25 years later, the mortgage is paid, the kids are off at college, and the family is doing great. Mom and dad are still working, saving for retirement, but want to make sure that there is enough life insurance in place to pay for a nice funeral for both as well as leave some funds for each of their children. As they approach their 50s, a participating whole life product will satisfy this need and gives the couple great flexibility with the cash buildup.
Time for a check-up?
Also, there are many changes in insurance product design and return in the last 20 years. If you have not sat down with an insurance professional in the last 10 years, we strongly suggest you do so. Your policy may be outdated, not only for your own goals, but in how it performs with the rest of the insurance market. It never hurts to have a checkup. As we get older, our needs and budget changes, and it only makes sense to make sure you have the right protection plan in place to meet your current goals, not those of 20 years ago.