Your life is a rich, complex experience with many ups and downs. Your life insurance death benefit should be adjusted so that it can help your heirs meet the obligations left by all of the events that occur. Some of the situations which may prompt a change in life insurance death benefits include:
New baby: Whenever your financial obligations and the number of people relying on you increase, as they do when you add a new baby to your family, your life insurance death benefit should follow suit. Increase your death benefits to ensure your child’s future financial needs and current care needs are provided for.
Marriage: Married couples often increase their cost of living based on the income they both bring in. If one becomes a homemaker, the working spouse can often end up relying heavily on the homemaker’s contribution to make his or her life easier. Either way, this will result in both spouse’s needing a higher death benefit to allow for the reliance the surviving spouse had on their contribution.
New job: If you had a group life insurance benefit with your previous employer, now is a good time to get your own individual policy so that you can lock in a rate based on your current age and health. If you already have a life insurance policy, you can consider increasing the death benefit so that it is in line with compensation and benefits at your new job. Also, since you are so far from vesting when you switch jobs, you should consider how an increased death benefit could help your spouse with retirement savings.
Death of a spouse: When your spouse passes away and leaves a life insurance death benefit, that benefit will likely become part of your estate when you pass away. This can create an estate tax burden for your heirs, leaving them with fewer assets. In addition, if your children still rely on you for support, the death of your spouse means that their support will more heavily depend on the death benefits you leave behind.
New home: A new home means a new bill, and that means an adjustment in your death benefit. Your benefit should be enough to allow your heirs to pay off the mortgage and support the costs of continuing to live in the neighborhood.
Together, we can keep your Oklahoma life insurance plan consistent with the current needs of your family. Give us a call at Magill Agency today to get started.