Choosing a life insurance policy depends on your lifestyle, financial situation, and your loved ones. Have you ever wondered what would happen if your life insurance needs changed later in life? Maybe you adopted a child, or you recently got a divorce. These life events might make it necessary to take a second look at your life insurance policy. In this article, we list a few life events that could trigger the need to update your life insurance coverage.

1. Buying a Home 

Purchasing a new home is a big investment and a significant life change. Coverage like mortgage protection insurance provides a death benefit to your family if you pass away, preventing them from losing their home if the unexpected were to happen.

If you are the primary breadwinner, mortgage protection insurance can offer financial support to your loved ones  – if you pass away or become disabled, your closest loved one isn’t left to foot the mortgage payment on their own. 

If you recently renovated or refinanced your home, this might be a good time to reevaluate your life insurance needs. Any changes made to the value of your home require a second look at your life insurance coverage – you might need to add some additional coverage to ensure that your mortgage is fully covered in the event of tragedy. 

2. Getting Married

If you recently got married, you will want to check in on your life insurance coverage. If you or your spouse are lacking life insurance, now is a great time to choose a policy that will support your goals for the future. Thinking about having kids? A term life insurance policy would be a great fit. Planning for retirement? Consider investing in an annuity

Your options for life insurance coverage will depend on you and your spouse’s financial goals and your plans, so it’s important to make these big decisions early. In the event of your death, life insurance provides a tax-free, cash death benefit for your loved one to use to cover the mortgage payments, funeral expenses, their retirement and more.  

3. Having or Adopting a Child

When your family starts to grow, it is a good time to consider updating your life insurance coverage. Since you now have children who depend on you financially, your life insurance coverage should reflect their financial needs too. Life insurance death benefits provide a safety net to pay for things like childcare, clothing, education and other expenses.

These funds could even be used to pay for your child’s college education if you aren’t there to support them. 

4. Getting Divorced

Just as marriage is a signal to check your life insurance policy, getting a divorce is another reason to double-check your coverage. You might not need as much coverage as you currently have, or you might need to adjust the amount based on your children’s ages.

In addition, you will want to review your chosen beneficiary to ensure this information is up to date.

5. Estate Planning

In addition to providing liquid funds that can cover your final expenses, life insurance can also cover more specific estate planning needs. Benefits can cover estate taxes, financial protection for surviving loved ones and the creation of a charitable legacy. 

6. Entering Retirement 

If you are about to enter retirement, you will want to take a close look at the retirement savings vehicles you’ve invested in over the years. Your annuity is probably nearing the end of its accumulation phase, and the retirement payout phase is coming close.

Cash value life insurance products and annuities can help you enjoy a steady payout to fund the retirement lifestyle you deserve.  

Do you still need life insurance? 

If you’d like a personalized policy with competitive rates, you’re in the right place. If you’re ready to get coverage, fill out our online application for term life insurance today. And if you have any questions along the way, our insurance advisors are only a click away.

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Calie Brummer
Head of Digital Communications
Calie Brummer is a staff writer and Head of Digital Communications at Quility Insurance with a focus on financial well-being and life insurance solutions.