When I meet with clients or prospects, one of the questions I ask is “do you have a long term and short term financial plan in place…And do you have regular reviews to adjust your financial plans to your changing life?” Many clients answer yes, just to get through the question. Some assume that if they tell me they have life insurance then they are all sorted out. Many clients who do have life insurance are under-insured, or simply have no idea what type of life insurance they have, how much coverage they have, in some cases, even how much they pay.
Having any life insurance is a good step in the right direction, but it is important to note that as your life changes, your life and financial needs inevitably change as well. Consider that the life insurance and financial needs of a 23 year old male without dependents is quite different from the life insurance and financial needs of a 35 year old husband and wife who have two young children and a $200,000 mortgage. With our 23 year old, as time goes on, he may choose to start a family, and as such, his need for life insurance will increase dramatically with these new dependants. Conversely with the older couple, as large debts such as the mortgage get paid off, they may need to modify their financial plan, as well as the type of and amount of life insurance needed.
Life events that can change your insurance needs include the birth of children, gaining a partner and their dependant children, the loss of a partner through divorce or death. If you acquire more debt, your life insurance needs may increase, if you repay more debt, your needs may decrease. For these reasons it is important to review your coverage regularly, especially if you go through any significant life change.
I can help you think through the coverage you need, and explore the different ways insurance can help you achieve your financial goals.