Many of us in South Louisiana have had to review our homeowner and flood insurance needs in the last few months. But when is the last time that we reviewed our life insurance? Have our needs changed since we last made that purchase? Life can happen in a short amount of time so if not, it might be time to dust that file off and show it some love.
Many of my clients purchase term life insurance because it makes sense for their needs. So the assumption is that an annual review is not necessary- the term and face amount typically stay the same throughout the life of the policy. However, your beneficiary might. How many of us have a 20 year old child? If you know a 20 year old who could be trusted to utilize the proceeds from a life insurance policy in an appropriate manner, please send them my way. I would recruit them in a minute. My point is that most are not. But give it 5 years. Now we are talking about a 25 year old who hopefully has a job and maybe even a family. This person would now be a terrific candidate for your beneficiary. If you do end up making a change, you may also want to speak with your estate planning attorney. It might be time to update your will as well.
Once middle age comes around, this conversation changes to retirement planning and long term care needs. Taking care of an aging parent or loved one often prompts this discussion. The truth is that the older we are, the more difficult life insurance can be to obtain because of cost and medical underwriting.
Life can change very quickly. Don't let those changes accumulate. Assess your needs regularly. It will make the process of reviewing and applying for life insurance so much easier.