by Gabby Barton, Marketing Specialist
Life is full of changes, and your life insurance policy should reflect those changes. Regularly reviewing your life insurance is essential to confirm that it continues to meet your needs and those of your loved ones.
When should I review my life insurance policy?
Significant life events like getting married, having a child, buying a house, or even the unlikely event of winning the lottery can drastically alter your financial responsibilities and goals. Pete Orme, Sales Outreach Specialist for Catholic United Financial, says, “Reviewing your life insurance policy helps you adjust coverage to match any new changes and financial obligations.” For example, purchasing a home means adding debt and risk to your overall personal finances. Having adequate life insurance helps manage that risk.
Am I providing enough financial security for my survivors?
The primary purpose of life insurance is to provide financial security for your survivors. If your policy is outdated, it might not offer the full protection they will need. Verifying your coverage is up to date means your loved ones will be able to cover unexpected bills, mortgages, or other financial burdens in the event of your passing.
Checking that your beneficiaries listed on your policy are current avoids potential legal complications and ensures your assets are distributed according to your wishes. Properly naming beneficiaries can help avoid the probate process, which can be time-consuming and expensive. This safeguards that your assets are transferred to your loved ones without unnecessary legal hurdles.
How much coverage is enough?
Determining the right amount of coverage can be challenging for the average person. A simple method our Member Advisors use is a “factfinder,” which looks at your assets, salary, and financial obligations. “This helps you understand how much coverage is necessary to maintain your loved ones’ current lifestyle and meet potential needs in the future, such as staying in the family home, or paying for college,” says Orme.
Is it possible to be over-insured? It is possible, says Orme. Annual reviews of your insurance with your Member Advisor can help you adjust your coverage to an appropriate level.
For more personalized advice and to schedule your free policy review, find your local Catholic United Financial Member Advisor at www.catholicunitedfinancial.org/rep-finder. They’ll help you navigate life’s changes and secure your financial future.
