Life Insurance Planning

There are many stages of life that affect your need for life insurance. It is important to take these steps and how life insurance plays a role, while developing your overall financial plan. You might be surprised how often your life insurance needs change.

See all phases of the life below to know when you need life insurance and when to reassess your needs.

Life Stages
New Baby
If you are trying to get pregnant, pregnant or a new parent, you need life insurance. The truth is that the financial responsibility that comes before the baby. Life insurance will be the biggest purchase you make to protect the financial future of your child.

Newlywed
Married couples share financial obligations. It is important that after the honeymoon, you sit with them to create a solid financial plan that includes life insurance. Make sure everyone has enough life insurance to cover the loss of their individual financial contributions, if one of you should die unexpectedly.

New Home
One of the main reasons people buy life insurance to cover their mortgages. If you died today, your surviving spouse or family members have the necessary funds to cover your mortgage or pay it off completely? Other costs to consider include maintenance, utilities, repairs and unexpected property taxes. adequate policy of life insurance, it would be possible for them to keep the house you bought together.

Taking On Debt

When the debt is increasing life insurance. Debt is a debt old debt or new future, you have life insurance, which covers the remains, especially if your loved one is partly responsible for the loan, credit card, etc. Make sure that when you create a financial plan, to debt management, life insurance is a big part of it.

Promotion

When your income increases, so does their need for life insurance. Why? Because when you have more money coming in, their consumption patterns tend to increase. additional life insurance will help your family maintain their new financial situation and living standards. Remember, experts suggest a life insurance policy that is 10 to 20 times their annual salary.

Caring for Aging Parents
If you are financially responsible for elderly parents, think about how to survive financially if he died prematurely. If they can not afford to pay for health care, housing, or long-term care, make sure that these costs are calculated in a total nominal value of life insurance.

Business Changes

Life insurance can protect your business. It is therefore important to reassess your insurance coverage life whenever your business grows. Some examples are more profitable, acquire more debt or the employment of key employees.

Changes in Marital Status
If you have lost a spouse through death or divorce, is a good idea to reassess your life insurance needs. In fact, you do not need life insurance coverage more. But if you have children, remember they are the result of a financial obligation. Never lower your life insurance coverage without knowing their children are financially secure. Also, if you were married, it is important to ensure that the change of beneficiary of life insurance and make sure your current coverage meets the financial needs of her new husband.