Life insurance may seem like something you buy once and never look at again, aside from the monthly payments. However, there are many different reasons to reevaluate your life insurance plan, such as these 5 common reasons:
- The number of people who depend on you changes. If the number of people in your immediate family grows, such as getting married or having children, it is important to change your coverage. You may want to expand you coverage to a larger amount. On the other side, you may want to look into lowering your coverage in the event of one of your dependents passing.
- Your child becomes disabled. You may want to look into a permanent policy to make sure your child will be provided for in the event of your passing.
- You bought a policy before 2009. Prior to 2009, insurance companies were relying on mortality tables from 1980. After 2009, they switched to 2001 tables, which may allow you to pay lower premiums since people are now living longer and paying on their plans for longer.
- You pay off your mortgage. Owning a home may eliminate your need for life insurance. Evaluate your financial picture to see if you need to keep your life insurance policy, or if you could possible lower the amount to save some money.
- You have taken out significant debt, such as a student loan or a mortgage. The debt you have may be a burden to your dependents after your passing. Make sure you have the proper amount of life insurance to cover your debts after your passing.
The Insurance Agency of Dean Davis, located in Austin, Texas, can provide optimal life insurance to fit your needs. They also offer home, auto, and commercial insurance to fit your needs.