When Should You Update Your Life Insurance Policy?
Do you have term or permanent life insurance? If so, how much coverage do you own? Does your current employer provide coverage? When will your coverage expire? The answers to these questions will gauge how much life insurance coverage you should own, and when it may be time to purchase additional coverage.
Consider the following:
Current Income
Life insurance will help replace lost income and protect your family if you are not able to contribute financially. The more you earn, the more coverage you will need to provide the financial support to those who rely on your income. Has your income changed over the last 5 years?
Outstanding Debt
The amount of coverage you obtain should cover any outstanding debt you may have. Consider any mortgage balances, loans, or credit card debt. Will your current coverage support your future obligations?
Savings
Life insurance can provide additional funds if needed during your lifetime. Certain types of life insurance provide a savings account (cash value) that can be utilized to cover costs associated with education, retirement, or even a disabling event; in addition to providing a death benefit. If you have term insurance, have you considered the benefits permanent life insurance can offer?
Number of Dependents
The more dependents you have, especially if they are minors, the more coverage you will need to ensure their financial wellbeing. Is your current coverage enough to support a growing family?
Life Events
Large purchases such as a new home, starting a family and potentially paying for your childrens’ education will bring on additional expenses to your household. Life insurance can provide the financial support to cover any of these future life events. Have you experienced any major life events this year?
The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law.
This material is for informational purposes only and should not be construed as a solicitation of any particular insurance product or insurance carrier. In-surance is sold through Oppenheimer Life Agency, Ltd. (OLA), an indirect wholly owned subsidiary of Oppenheimer Holdings. Before purchasing a policy of insurance, please review both the insurance carrier and the insurance policy carefully before investing.
A strategic alliance exists between OLA and various outside providers whereby products and services may be utilized. Such providers may receive compen-sation as a result of the strategic alliance. However, the firms are completely independent of each other.
This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials.
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