Babies and Families

Is it Time to Update Your Family’s Life Insurance?

As changes in your family occur have you kept your life insurance up to date? It's important to update your life insurance to meet ever-changing family needs. 

Updating family life insurance policies

We get it. Between work, school, kids, and everything in-between, it can be a challenge to get everything you need checked off your “to-do” list by the end of the week. And while you may already understand the importance of keeping your family life insurance policies up to date, does it continue to take a backseat to other priorities?

If you're not setting aside the time to review and update your life insurance policies because you think it's a long and drawn out process that will take an entire day to complete - think again. Of course, just how long it may take you depends on what you're trying to accomplish. Two things that people may need to update from time to time are their beneficiaries and death benefit.

Reviewing beneficiaries

Have you gotten married, remarried, or been recently divorced? Did you have a new baby or adopt a child? These are common reasons why you should review the beneficiaries on your life insurance policy. If you don't, then the proceeds of your policy may not go to the person(s) that you had intended.

Typically, you can update a beneficiary by simply contacting your insurance agent or life insurance company representative and filling out a form that will amend your policy. Most insurers have representatives who can get you the requested form by email, fax, or the U.S. Postal Service.

Increasing your coverage

There are number of reasons why you may need to increase your life insurance policy's death benefit (a new marriage, a growing family, an increase in assets, etc.). Start by asking yourself that if you were to die today, would your family suffer financially? If you're unsure how to answer that question, then pull out your policy and contact your agent or life insurance company representative who can work with you to crunch the numbers and give you a better estimate of how much you may need to increase your coverage to adequately protect your family.

This is often determined by way of a life insurance detailed needs analysis (DNA). A DNA works by carefully considering your individual needs and obligations, as well as your current assets, then providing you with a calculated snapshot of how much life insurance you may need to meet your family's needs. Completing a DNA is typically a quick process and once you know your numbers, your agent or company representative can provide you with options for taking the next step to increase your coverage, if necessary. Another option is to plug your information into Protective Life's needs analysis calculator and in a matter of a few steps you will have a figure to get you started.

The most important takeaway here is not to wait. If you've had changes in your life and your family over the past year, then take a few minutes to assess whether or not an update to your life insurance policy is in order.

Was this article helpful?
3
6

Updating Your Life Insurance

Are your family life insurance policies up to date? Have you put off making important changes such as increasing your coverage or a beneficiary change because you think it takes too long to do? This article looks at two common life insurance policy changes that people often make. For more information, visit the Protective Life Learning Center.


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.

WEB.1953.04.16