You bought life insurance to protect your loved ones. But is it enough? Many people assume they’re all set once they’ve secured a policy. However, as life changes, so do your financial responsibilities. Wondering if you’re properly covered? Here are seven signs you may be underinsured for life insurance without realizing it.
Sign #1: You haven’t adjusted your policy since you bought it.
Chances are, something in your life has changed since you started your policy. If you haven’t talked to your agent about it, it’s possible that your life insurance coverage is no longer enough.
Sign #2: Your family has grown.
Maybe you got your policy before getting married or before having children. Reviewing your policy as your family life changes ensures there’s enough to cover things, like tuition, a mortgage, and life events for the people you care most about.
Sign #3: Your finances have changed.
Has your salary increased since you originally purchased your life insurance policy? Is your family living in a larger home or enjoying a more comfortable lifestyle? Your original coverage might not be enough to sustain that standard of living for your loved ones if something were to happen to you.
Sign #4: You only have employer-provided life insurance.
Group life insurance through your employer is a great perk, but it usually covers just one or two times your salary. That might not go far enough if your family depends on your income. In addition, once you leave your employer, you may not be able to take the coverage with you. Purchasing your own policy provides ultimate flexibility.
Sign #5: You bought a house or started a business.
These scenarios, among other large financial obligations, call for a review of your life insurance policy. If you’re now a business owner, it’s important to create a succession plan with business life insurance.
Sign #6: You don’t have a plan for final expenses.
Life insurance can help cover funeral expenses, so your loved ones aren’t burdened with extra stress or financial responsibility. If you haven’t considered final expenses or worked them into your policy, you may benefit by increasing your coverage.
Sign #7: You want to leave a legacy or donate to a charity.
If part of your long-term plan includes giving to a cause you care about, your current policy may not leave room for that generous gesture. Many people forget to factor charitable giving into their coverage needs when getting life insurance.
Thinking you may be underinsured with your life insurance? Luckily, now is a great time to make adjustments for your future. See what amount of coverage you may need with our life insurance calculator. Then, talk to a local, independent agent about a comprehensive life insurance policy today.
This content was developed for general informational purposes only. While we strive to keep the information relevant and up to date, we make no guarantees or warranties regarding the completeness, accuracy, or reliability of the information, products, services, or graphics contained within the blog. The blog content is not intended to serve as professional or expert advice for your insurance needs. Contact your local, independent insurance agent for coverage advice and policy services.
