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when you should review term life insurance coverageswhen you should review term life insurance coverages A clever fellow once observed that the only certainty in life is change. We go from single to married, from being someone's child to being someone's parent. Maybe we get divorced. Maybe we get rich. Maybe we get ill. For this reason, we also get term life insurance or whole life insurance so our loved ones and dependents are protected financially in case something happens to us. Not a pleasant thought, which helps explain why about 40 percent of adult Americans have zero life insurance, according to Brian Ashe, private insurance and investment adviser, and former Chair of the Life and Health Insurance Foundation for Education (LIFE). "Of the 60 percent that do have it, the average policy amount is equal to about three times their annual income." Not nearly enough, says Ashe, who pointed out that the beneficiaries of the 9/11 fund were compensated at roughly 12 to 15 times the deceased's annual income. According to a study released by LIFE in 2007, almost half of American adults would rather renew their driver's license than assess their life insurance needs. In such an attitude climate, it's no wonder that critical policy adjustments are overlooked following major life changes such as marriage, divorce, buying a home or having a child. Maybe you've waited so long you need life insurance for seniors. To remedy the situation, start by asking yourself how much money it takes to support your present way of life and where that money comes from. Maybe you have children in college, a mortgage to pay, a chronic medical condition, and a parent that needs long-term care. Well, remove your income from the equation and think about what new expenses could emerge if you weren't around. Now you have a good idea of how much coverage you need. Do the same for your spouse. If the amounts on your policies are less than the figures you come up with, it's time to call your agent and update your term life insurance or whole of life insurance coverage. "People buy life insurance for a certain need — and those needs change," says insurance specialist Mark Garetz, of Tri-Valley Insurance in San Ramon, California. "A child goes to college or graduates. Sometimes you are served by decreasing the policy. It's a good idea to review your policy to save yourself some money, too." The cost of whole life insurance is related to your health, your weight, your occupation and lifestyle. When any of these change, you should reassess your coverage. Working for yourself is a big change. You may have had life insurance benefits through your former employer that are no longer in place, or your new environment might be considered less of a risk to your safety. The only way to find out is to reevaluate your policy with an agent. Do it when you retire, when your children become self-sufficient and when illness or great wealth strikes. "Insurance needs don't go away," Ashe explained. "They morph into other needs." Get Your Free Life Insurance Quotes Now By Filling Out the Quick Form At The Top Of This Page.USInsuranceOnline provides quotes for life insurance of all types so our members can compare prices and save money. |