Why Life Insurance is Important to Review During 7 Life Events


According to the Life Insurance Marketing and Research Association (LIMRA), 41% of adults say they don’t have enough life insurance coverage.* 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. So, if you have coverage already, why is life insurance important to review?

It’s important to review coverage amounts and policy types when a milestone life event may affect your financial situation. That way, your loved ones are provided for based on your most recent financial circumstances instead of your early career days.

Check out these seven life events that should trigger a life insurance review.

1. Changes in Marital Status

If you’re single, you are the only one who depends on your income. But once married, you and your spouse both need life insurance. On the other hand, if you become single again, through death or divorce, updating life insurance policy coverage(s) for you or other family members — is a wise financial move.

2. Birth or Adoption of a Child

These are the years when you need the most life insurance coverage. Your coverage should be enough 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. Changing life insurance coverage to match your growing income helps balance your financial security.

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

If you are married, 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 adult children, another loved one or an estate 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 or downsizing to a retirement cottage should prompt you to review your coverage. A larger place generally means higher monthly expenses, while a smaller home likely takes less of your income to maintain.

Determine Your Life Coverage Needs with GuideStone by Your Side

Need help determining your life coverage needs? Use GuideStone’s Life Insurance Calculator to help estimate how much coverage 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 life coverage options today or contact us at Insurance@GuideStone.org or 1-844-INS-GUIDE (1-844-467-4843), Monday through Friday, from 7 a.m. to 6 p.m. CT.

GuideStone® welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as legal advice.