Term Life Insurance Coverage
If you already have life insurance but are wondering whether the policy still fits your needs, IntelliQuote® is here to help you evaluate your existing life insurance coverage and determine whether you should enroll in an alternative or additional plan.
The main benefit of term life insurance is that it provides for your loved ones in your absence and protects them from financial stress. When it comes to life insurance, having too little coverage is almost as bad as having no coverage. If you don’t leave a large enough death benefit to provide financial protection for your family, they could still struggle with day-to-day expenses, or even must leave the family home. How do you know if you have enough life insurance coverage?
There are two main times when you should re-evaluate your life insurance cover:
- If it’s been a few years since you purchased your policy, it’s a good time to evaluate your existing life insurance coverage.
- If you’ve experienced a planned or unplanned major life event, it is a good idea to re-evaluate your coverage as your needs may have changed.
Understanding Your Existing Life Insurance Coverage
The first step in checking that you have sufficient life insurance to provide for your loved ones is to look at your existing insurance coverage. There are two key questions you need to find the answer to: how long and how much?
If you have an existing term life insurance plan, you should check how many years of life insurance coverage are left on the policy. For example, if you took out a 20-year term plan 15 years ago you’ll only have 5 years of coverage left with the level guaranteed premium. Why does this matter? If your family will be financially reliant on you for more than 5 years, you’ll need to find additional coverage to provide financial protection for them until they are self-sufficient.
Secondly you should look at the death benefit amount. If you took out the policy many years ago it’s very possible that the amount isn’t appropriate for your current situation and in many cases, were not adequate when originally purchased. For example, key life events may have affected your life insurance needs. Certain life events can often change your financial situation drastically. If you have recently experienced any of the following, or expect to, we recommend taking a second look at your policy:
- Getting Married
- Having a child
- Moving to a different home or purchasing a new one
- Taking on debt, such as a home equity, auto or other type of loan
- Changing jobs
- Starting your own business or changing your business
- Providing support to aging parents
- Planning for your kids college
- Getting divorced
- Planning for retirement
Your coverage should be re-evaluated on a regular basis to ensure you have the right level of coverage for all life’s events. A great tool used to assess the level of coverage you may need is our free life insurance calculator. This easy to use feature will help you calculate your existing coverage needs. You will then be able to compare the numbers against your current coverage.
Assessing the Benefits of Term Life Insurance Coverage
Term life insurance is the most affordable type of life insurance, making it easy to get a large amount of life insurance coverage while not breaking your monthly budget. Some of the more common uses of term life plans include:
- Paying off the mortgage balance on the family home so your family can stay in the property
- Covering all existing debts to leave your family debt free
- Replacing your income for a set period until your loved ones can get back on their feet
- Leaving a college education fund for your children
- Money to pay for all end-of-life costs
Adequate term life coverage will allow for you to provide a long-term financial umbrella for your loved ones.
Updating Your Life Insurance Coverage
The next step is making appropriate changes to your life insurance policy so you can ensure your family and loved ones are protected. If you have found your insurance needs have changed, it’s a good idea to take measures now and change your policy to cover any additional financial needs you have identified.
Our experienced life insurance agents are here to discuss your coverage needs and offer guidance on choosing the right plan. One key thing to remember is that there are no stupid questions! If you have a question about a policy our agents are here to help.
If you have any questions feel free to call us today! Our agents can walk you through how certain life events may affect your insurance, as well as recommend changes to ensure you and you’re loved ones are fully protected. You can reach our agents at 800-963-6405 today.