When you take out life insurance, you certainly do so taking into account the circumstances of the moment. However, on many occasions, your situation changes and it is necessary to reevaluate your needs and those of your family group. To help you, in this guide we tell you when and why to review your policy.
There are many situations that may have led you to take out life insurance. For some, the priority is to ensure the welfare of their families in the event of a serious situation such as illness or death itself.
For others, the idea of having this type of policy is based on other needs, however, the purpose is always the same: to ensure the future of loved ones.
But what happens when your personal situation changes and your family group increases or decreases due to any circumstance?
Your life insurance must adapt to these changes, in this way you can modify the beneficiaries of the policy and any other point of the contract that you need to modify.
In this sense, we advise you that before any important change that occurs in your life, try to review your insurance. We will explain why below.
If you are getting married
Many people take out Life Insurance when they are still single and leave their parents as beneficiaries so that they are not the ones who bear all the expenses after your possible death.
Many also opt for this option so that the parents of the policyholder are not financially helpless if a serious accident occurs.
However, if you find yourself in this situation and your marriage date is approaching or if you plan to start a new life as a couple, it will be important that you review your life policy and include your boyfriend or girlfriend on the list of beneficiaries.
For the birth of a son
Without a doubt, the birth of a child is the most important event that a couple can experience in their entire life. This fact will completely change their day to day and also the routine that the parents followed up to that moment.
There are many things to think about before the arrival of the new member: the baby’s clothes, the hospital, the bedroom, the parents’ work, and a host of other things.
Among them, a procedure that is vitally important is to review Life Insurance. Indeed, your child cannot be left unprotected if an accident or illness occurs that takes your life or that incapacitates you from offering good well-being.
In this sense, we advise you to change the beneficiary of your Life insurance and include your children in the policy to offer them all the necessary coverage to ensure their future.
It is good that you know that there are some insurance companies that even offer guarantees for the education of children. Don’t forget to ask your insurer if they have these options.
If you are going to get divorced
In case of divorce, it will also be necessary to review your Health Insurance and thus not only modify the beneficiaries of the policy but also all the coverage contracted.
Remember that in these types of situations it is not always easy to reach an agreement that leaves both parties happy. That is why we advise you to take things slowly and be sure of the agreement you are going to reach.
If they increase your salary
Have you found a new job with a better salary? Has your boss offered you a raise? In either case, you should think about reviewing your Life Insurance.
By earning more money, you may want to improve the coverage that you bought in the beginning. You can also increase the amount of your insurance and thus improve the benefits and the future of your family in the event of a claim.
If you lose your job
As happens when you receive a salary increase or when you find a new job with better opportunities, in the event of losing your job source it is also convenient that you review your Life Insurance.
Until you find a new position, your financial situation may be affected and you will have to reduce the coverage of your policy in order to save on your Life insurance.