The need to review your life insurance

by Chris Clare

So if you think that the life insurance policy you took out a few years ago is doing its job fine, you would be wrong. In this article we will aim to show you how reviewing the performance of your life insurance can be the difference between using your money wisely and metaphorically throwing it away.

Let’s take a look at this. Four years ago, your life situation was different, maybe you were a single apartment renter, maybe you were an avid smoker. There’s a chance that you were into doing daring things with your friends like bungee jumping on weekends off from your job as a motorcycle racer while studying to be a technician on a Nuclear reactor. Now, today you are married with two kids, a nice mortgage for that house in the suburbs and gave up smoking for your wife and the most daring thing you do now is watch I Love Lucy reruns on the couch as you relax from the weekly grind of selling hot dogs at the corner market while doing home schooling to learn to do Computer programming.

Okay so we are maybe jumping from one end of the lifestyle spectrum to the other but it’s poetic license to get the point across. Now it may well be the case that your situation has not changed over the last five years and if that’s the case then you will have nothing to concern yourself about. But if things have changed it is imperative that you should have your policy assessed and upgraded if needs be. Failure to do so could at best leave you a few pounds out of pocket but at worst could be leaving you in severe financial straits.

If you have a meeting with your agent, he or she will be more than happy to go over life altering events and circumstances that can change your need for coverage and the need to increase or decrease that coverage to save money and or make sure that all of the many contingencies are factored in so that when the unexpected happens, you have the coverage to handle the situation without having to face financial ruin or bankruptcy.

The two choices you have are term life or whole life insurance. Depending on your situation one is going to be a better option than the other. The term life policy may cost less but with whole life you can take into account the need to borrow against the policy if financial shortfalls should arise.

These days most people are going for the term policies. They are only slightly more expensive but come with significantly bigger benefits with regards to covering for life’s possibilities. It offers you financial peace of mind that should the worst happen, you can cash the policy in so as to release the money to help out with whichever impossible situation has occurred, or if something minor has gone awry in your life, you can borrow more money against the policy and keep it on going. A savings plan with free access, if you will.

So, which plan is best for you, your family, and your current life situation? These are questions that are best directed to your agent and you can either discuss with your life insurance agent, if you have one, or research at the website where you have your coverage if you got it online on the Internet.

This article hopefully shows that whilst there is a choice to make, it should not need to be a daunting decision. You just need to remember that certain situations may arise in the future and like all things in life it is the better option if you are prepared for them. As long as you cover yourself you will be in a win win situation. If something does happen then you know that the policy is in place to cover that eventuality and if not you at least have peace of mind. If you obtain whole life and nothing happens then you also have a nice nest egg with which to plan your retirement around. But the important thing is not to put off to tomorrow what you can do today because you never know when that unexpected event may arise.

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