The 10 Life Events that call for a life insurance review
How do you know when to review your life insurance – or to encourage a friend or colleague to look at their policy? Here are ten key life events that call for a look at your coverage.
1. Marriage: now is the time for each spouse to have financial protection against the tragic loss of their newly beloved.
2. New baby: Congratulations! Now you have another mouth to feed, plus many more expenses to cover 🙂.
3. New home: family survivors will need to pay off the mortgage, as well as other debts.
4. New business: bank loans need to be covered.
5. New business partner: the buy-sell agreement should be funded.
6. New executive / key person: the business should give execs a special bonus to keep them loyal. Plus it should cover itself in case it loses key people.
7. Business succession: one child can take over the family business. The other children can be given equal estate distributions with life insurance.
8. Divorce: How much life insurance is mandated by the divorce decree?
9. New social cause: religious, health, or other organizations close to your heart can be sustained after you die with the charitable gift of life insurance.
10. Retirement: if you take a pension distribution for your life only, you can use life insurance to provide your spouse with income when you pass on.