It makes good financial sense to periodically examine your life insurance coverage, in order to make sure the coverage is still sufficient. After all, life insurance is often a family’s most important financial and estate planning tool.
With today’s frequent changes in financial circumstances and goals, it’s a good idea to re-examine your life insurance coverage on the occurrence of any of the following:
- Marriage or divorce
- Birth or adoption, or acquiring a financial dependent such as a parent
- Children leaving for college
- Children “leaving the nest”
- Purchase or sale of a home
- Serious illness
- Substantial growth or depletion of assets
- Start-up of a business
Tip: In addition to the amount of coverage, you may need to make changes relating to beneficiaries, policy ownership, or type of coverage. You may need to consult with a professional.