Seven Reasons to Review Your Life Insurance Coverage


According to the Life Insurance Marketing and Research Association (LIMRA), almost 6 in 10 adults say they have a greater need for adequate life insurance in light of the pandemic.* This heightened sensitivity to the need for insurance protection serves as one of many reminders that it’s time for a life insurance checkup.

The primary job of life insurance is to replace the income your family would miss in the event of your death. Therefore, it only makes sense to review your life insurance coverage when your financial situation changes. Here are seven events that should trigger a life insurance review:

  1. Changes in marital status: In your single days, you were the only one who depended on your income. But once married, you and your spouse both needed life insurance. Conversely, if you become single again, through death or divorce, your life insurance needs may change.
  2. Birth or adoption of a child: These are the years when you need the most life insurance coverage. Your coverage should be adequate for the surviving spouse to cover the day-to-day expenses of running a home and caring for children. College tuition for children should also be part of the equation.
  3. Income changes: Ideally, your income will rise throughout your career. You may find that the life insurance policy you purchased in your 20s is no longer adequate to replace your income when your fortieth birthday arrives.
  4. The empty nest: Your life insurance needs will change when your children no longer rely on you for day-to-day support. You might find that you only need coverage to provide living expenses for your spouse.
  5. Beneficiary changes: When you are a newlywed, your spouse will likely be the beneficiary of your life insurance. If your spouse becomes disabled or dies, you may want to list one of your children as your beneficiary instead.
  6. Health improvements: Did you lose weight or exercise to bring your blood pressure under control? Congratulations! You may qualify for discounts or be able to purchase additional coverage at a reduced rate.
  7. Housing changes: Buying a bigger house for your growing family and downsizing to a retirement cottage should prompt you to review your coverage. A larger house generally means higher monthly expenses, while that smaller home likely takes a smaller chunk of your income to maintain.

Need help determining your life insurance needs? Try GuideStone’s Life Insurance Calculator. It will generate a report that will help you determine how much life insurance might be appropriate for your situation.

At GuideStone®, we care about your well-being and wish to come alongside you in providing insurance for you and your family so that you can steward your resources well and have peace of mind for what the future may bring. Learn more about GuideStone’s term life insurance options today.

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