Key moments when you should update your life insurance policy

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A lot of people tend to forget to update their insurance policies. It’s easy to regard life insurance as just one of your monthly bills. Changes in premiums happen all the time, and it’s not often that these are explained to us. However, certain life changes mean you have to revisit your insurance policy. Here are some key moments in life that should trigger a call to your insurance agent.

You are getting married or getting a divorce: If you are gaining or losing a dependent, you need to update your insurance policy. Not doing so could either not include them into your plan or you’ll be paying a higher premium for a person you are no longer with.

You have children: If you’re not planning on getting a separate insurance plan for your children, you may want to include them in yours. Increasing your coverage is just one of the many options that is readily available to you. Such changes can help secure your children’s financial future, help them later on with education expenses, or simply see to it that they are honored part of your estate if the unthinkable occurs.

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You got a new job: Depending on which way your salary went, you need to revisit your insurance policies. It could be possible to be burdened with an insurance premium that’s too expensive for your new job. At the same time, upgrading your coverage is a good choice if you got a significant pay increase.

You finally retired: For people who are part of a group life insurance policy through an employer, retiring would mean losing the coverage. Now that you’re relying on insurance as your income adjusting it according to your lifestyle is necessary.

Delos H. Yancey III is the chairman, president, and CEO of State Mutual Insurance. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. Visit his company's website for more on its services and history.