Life is full of surprises; you never know what happy or tragic events may be around the corner. As you’ll age and reach different stages in your life, your insurance needs will change. In order to ensure adequate coverage, you should contact a reputable and established Austin insurance agency.
Many people don’t even recognize that their insurance needs have changed until a life crisis strikes. Here are a few life events that should prompt you to reassess your life insurance coverage:
1. Getting Married:
When couples become life partners, it’s likely that both work and contribute an income to the household. If one person passes away, the other partner could be burdened with many financial obligations.
Proceeds from a life insurance policy can help the survivor maintain their lifestyle by paying for bills and debts, such as a mortgage, car loan, student loan, and credit card.
2. Having a Child:
Welcoming a new child into your family is a great feeling, but becoming a parent is also expensive. According to a report, a typical American family spends more the $230,000 raising a child from birth to age 18.
A parent of a dependent child should have life insurance to protect them. Even without parents, a child could use the proceeds to pay for education or other expenses. And for a single parent, life insurance would be a vital financial lifeline for a child after the parent passes away.
3. Starting a New Job:
Many employers provide cheap life insurance in their group benefits packages. However, usual employer-sponsored life insurance is only one or two times the annual salary. They may not be sufficient if you support a family. Moreover, workplace policies are job depended. So, if you leave your work, the coverage ends.
It is suggested to have life coverage at least five to ten times your annual salary. However, this amount can vary depending on your financial situation and family requirements.
You can purchase an additional life policy on your own or have the choice to buy supplemental life through your employer. Having an individual life policy ensures you’d never have a coverage gap if you lose your job.
4. Buying a New Home:
Purchasing a new home is a big investment. And after buying a home, ensure that you have insurance to protect against things such as weather damage, fire, theft, and vandalism.
5. Becoming Self-Employed:
You must provide your own benefits package when you become self-employed. So, don’t forget to buy life insurance to protect those who depend on you. If you have one or more business partners, you may also need coverage to protect your business from a partner’s death.
6. When Retiring:
When retirement draws near, it is always good to reassess your life insurance and consult with a reputable Austin insurance agency.
Having a life policy can also help your heirs pay taxes and legal fees related to your estate, depending on your situation.
Shopping for an insurance policy when you’re young and in good health can help you save money. Remember, underwriting guidelines vary from insurer to insurer, so it’s better to get multiple quotes and compares prices for similar policies.