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Top Five Reasons Review Your Life Insurance

Written by Cynthia Pinkston, Wed, Dec 16 2009

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When was the last time you reviewed your life insurance policy? Most likely, you take your car into the local mechanic to change the oil every few thousand miles to make sure you don’t blow out the engine. Shouldn’t you review the policy you have in place to ensure the care of your loved ones every once in a while? Keep reading to see the top five reasons you should review your life insurance policy.

  1. You may be underinsured. When a new member joins the family, there’s a lot to think about, and life insurance may not be at the top of the list. According to a 2008 survey by the United States Department of Agriculture, though, the cost of raising a child born in 2008 to age 18 in a middle-income range family is over $291,570. Middle income is defined as a household with before-tax income between $56,870 and $98,470. According to the study, parents in high-income households with before-tax income over $98,470 will end up spending, on average, $483,750. And that doesn’t cover college! If you’re not around, will there be enough money to take care of your family?

  2. On the other hand, you may be over insured. Those kids have grown up, graduated from college, and started their own families. Empty nesters often downsize their homes when children leave – you might be able to benefit by downsizing your life insurance policy to fit your current situation.

  3. Your life insurance company may have taken a financial hit. In today’s times, it’s prudent to know how tightly woven the basket is that’s holding your eggs. Getting a life insurance quote from a high quality company is easier now than ever before. Getting a life insurance policy from a financially strong company is not always more costly.

  4. You could be paying too much. Better and less expensive options may exist that you are not aware of simply because the life insurance market is so large and complex. People are generally used to working with one company and therefore have only a few options – the plans that specific company makes available to them. It may sound cliché, but it’s true: you could be saving money by checking out other insurance companies.

  5. Your coverage could expire before your need does. Life expectancy increases every year, and with medical advancements, the life insurance policy you took out 15 years ago may not cover you as long as you need it to now. Take a minute to talk with your loved ones about how long is necessary to cover their needs.

After that oil change, when the mechanic pulls your car around and gives you the keys, you get peace of mind knowing that you’ve taken steps to protect your car – you’re less likely to end up on the side of the road. Life insurance is sort of the same – pull it out every so often for a check to make sure it’s working the way you need it to. Start now to see if you can improve your situation with custom life insurance quotes minus the hassle.