Life is full of uncertainty. And the more you have to protect — a home, family, business, retirement security — the greater financial risks you face. Having a solid life insurance strategy can help you prepare for the unexpected. Here are five times you should review your life insurance:
When You are Young and Single
Why purchase life insurance if you have no dependents? First, if you have debts, insurance can help prevent them from being passed on to your heirs. You can also use insurance to leave a legacy — for instance, by selecting a favorite non-profit as your beneficiary. Some insurance policies may also offer investment features.
When You are Married
Life insurance is even more important when a spouse relies on your income. In the event of your untimely death, the policy can help your spouse manage financial burdens. With term insurance, you can select a specific time period and coverage amount that meets your needs.
When You are a Parent
When you have children, your expenses increase and you may want to increase your insurance coverage accordingly. Consider choosing a term that will see your children through until they’re grown and has enough coverage to assist with college expenses.
When You are an Empty Nester
With your children grown and financially independent, your insurance needs may change again. You will still want to provide financial security to your spouse for current bills as well as for retirement savings. This can also be a good time to investigate long-term care insurance, which can help you manage the high costs of health aides or assisted living without reducing your retirement savings.
When You are in Retirement
As part of your retirement plan, review your insurance coverage to verify an unfortunate incident won’t wipe out your retirement nest egg. Also consider a whole life policy or an annuity may provide you with additional income during retirement.
You can use a life insurance policy as part of your estate planning, too. For instance, you can use it to leave a financial legacy to your children — perhaps to help them purchase part of the family business or to provide ongoing support to a special-needs child.
Keep an Eye on Coverage
While these life stages point out specific times to review your life insurance needs, it’s also a good idea to evaluate coverage on a regular basis. To learn more about life insurance options at every stage, contact a Fifth Third Bank advisor.