Skip to Content
Father, mother and daughter laughing symbolizing a time of life when learning about life insurance is important.
Life Insurance Basics

Got life milestones? Get a life insurance policy review

This article discusses seven life milestones that impact your life insurance needs. Getting married, investing in a business, and planning for retirement are all cause for a policy review.

It's no surprise that life events impact life insurance. Circumstances like getting married, starting a new job or having a baby may play a role in determining which policy is the best fit. They can also impact how well your existing life insurance policy is working for you.

If you have recently experienced, or are expecting to experience any of the following events, it's probably a good time for an insurance review.

Seven life milestones that affect your life insurance needs:

  • Life Milestone 1. Getting Married
    Life insurance can help provide for your spouse and children in the event of your death. It can also help accumulate the cash value you need to support your long-term financial goals. If you're getting married and saying “I do,” it's a good time to revisit your policy and find the best fit for your new family.

  • Life Milestone 2. Getting Divorced
    When transitioning from married to single, you need to confirm that your life insurance is transitioning with you. Depending on your policy details, getting divorced may mean you need to change the beneficiary, purchase a new life insurance policy, or make adjustments to ensure your children are provided for.

  • Life Milestone 3. Having a Baby
    Childcare and college tuition are typically very expensive and the daily expenses involved with raising children can also add up quickly. When you have a baby, schedule a time to review your policy and confirm that your children's needs would be taken care of in the unfortunate event that you were no longer there to provide for them.

  • Life Milestone 4. Buying a Home
    When purchasing a home, refinancing, or extending the life of your mortgage, your life insurance policy may not be enough to cover the increased debt load. It's important to confirm that your policy will pay the balance that your loved ones would be responsible for in the event of your death.

  • Life Milestone 5. Investing in a Business
    Are you a business-owner? Substantial changes in the value of your business (for example, if you've invested in a new building or additional inventory) impact your life insurance needs. Be sure your family is protected from the cost of those investments. Also, if your business is highly reliant on a key employee or a business partner, ask your insurance agent about life insurance solutions to offset the potential financial risk of losing those people.

  • Life Milestone 6. Planning for Retirement
    Life insurance isn't only designed for unexpected circumstances. Permanent* plans can serve as vehicles that you can use strategically to provide for future goals.

  • Life Milestone 7. Planning your Estate
    If you're concerned that your family may have to sell assets to pay the taxes on their inheritance, life insurance may be an option for you. In some circumstances life insurance can reduce the tax burden, while providing for your medical and funeral expenses at the same time.

Just like other financial tools, life insurance isn't a “get it and forget it” proposition. Schedule time in your calendar to review your life insurance policy annually and whenever you experience a major life milestone.
 
*Provided required premium payments are timely made.

 

 

WEB.1380.03.15

Arrows linking indicating relationship

Related Articles

 Senior adult couple hugging and smiling.

Can I buy life insurance if I have health issues?

Learn more
Young woman speaking with a life insurance agent over the phone to discuss her life insurance coverage options.

5 essential tips for buying life insurance

Learn more
Man with a beard and glasses studying something closely on a tablet.

3 benefits of variable universal life insurance for retirement and tax

Learn more

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.