Life changes and so do your life insurance needs. That’s why it’s extremely important to examine your needs at least every few years and certainly when big changes occur, like having a child.
Wheeling, IL (Vocus/PRWEB) March 15, 2011
There are many factors affecting consumers’ life insurance needs everyday. A large grouping of those factors includes some of life’s major events. AccuQuote, one of the country’s largest and most respected term life insurance quoting and brokerage firms, reveals the top life events affecting a consumer’s need for more or less life insurance protection.
Most people with life insurance do not take the time to routinely review their coverage. As a result, one-third of Americans, even affluent households, are severely underinsured, according to LIMRA. In fact, even a higher number, half of U.S. households (58 million) say they need more life insurance – the highest level ever, LIMRA reports.
“Life changes and so do your life insurance needs,” says Byron Udell, founder and CEO of AccuQuote. “That’s why it’s extremely important to examine your needs at least every few years and certainly when big changes occur, like having a child.”
AccuQuote reveals the top life events that affect term life insurance needs and trigger the need for a thorough policy review. Additionally, the company suggests consumers without existing life insurance purchase a policy during these major life events:
- Getting married (or a change in marital status) – Marriage comes with shared financial responsibilities. As a result, it is important to prepare for life’s uncertainties by purchasing sufficient life insurance for both spouses. Alternatively, getting divorced or losing a spouse for any reason may mean less life insurance coverage is needed. However, be sure children and all other dependents are adequately covered even after becoming financially independent from a former spouse.
- Having a child – Parenting a child is a very rewarding experience that requires full attention and support, including financial support. Life insurance can help a child grow up in a financially stable environment should something devastating happen to the parent or caregiver. Be sure to increase coverage with each new child.
- Purchasing a new home – The best way to protect against costly mortgage payments should a breadwinner die is with life insurance. Without it, a surviving spouse or loved one may not be able to afford the mortgage, as well as home maintenance, utilities and other unforeseen expenses. Life insurance coverage should increase as the house and payments get bigger.
- Changing jobs – Getting a promotion is a tremendous reward, but it also comes with more financial responsibility. Experts suggest having a life insurance policy that equals 10 to 20 times one’s annual income in coverage. So, as the paycheck increases, so should the life insurance.
- Planning for retirement – A retirement plan without life insurance is no plan at all. Life insurance can help consumers planning for retirement supplement their retirement income, preserve estate assets for their survivors and protect their loved ones financially should something devastating happen before retirement.
For more information on how to plan for life’s major events with life insurance, contact a licensed life insurance agent at AccuQuote. Call 888-314-4455.
AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals who answer questions, identify important issues and make meaningful recommendations. The company offers consumers an extensive selection of life insurance products, including term life, whole life, universal life, accidental death, long-term care, disability and selected annuities. AccuQuote.com has many handy insurance tools, including a term life insurance calculator to help consumers determine their life insurance needs, a glossary of industry terminology, a collection of articles and press releases that cover many life insurance topics and a blog that provides opportunities for discussion on life insurance and personal finance. For additional information or to get free quotes for low cost life insurance, please call AccuQuote at 888-314-4455.