Life Insurance Considerations with a Job Promotion
Will my life insurance needs change due to a job promotion?
In a word, YES!
In addition to your new job title you most likely received a pay increase. You may want to use that extra income to buy a new home. Purchasing additional life insurance is essential to cover your new mortgage in the event of your death. The great news is now that you have a higher income, you may qualify for more life insurance than you already have.
Perhaps you previously worked in an occupation that was considered “uninsurable” due to the risk of your occupation. For example; you worked as a pyrotechnician (explosive technician) for a demolition company and you were considered uninsurable. Now you have been promoted to a management position within the company that would not require you to handle explosives. With your new “managerial” duties and increase in your income, you could be able to purchase more life insurance to protect you and your family.
If you had life insurance prior to your promotion, you should look closely at the existing policy to determine if you are paying a higher rate due to your prior occupational duties. If you are, it may be worthwhile to replace that policy with a new one. You may be able to receive a better rating class with a lower premium.
Your recent job promotion may have also changed your home-life situation. Perhaps your spouse is now in a position to be a stay-at-home caretaker for the children. If so, your spouse should think about obtaining their own life insurance policy. If your spouse happens to pass away while the children are young, you would have to hire someone to come in your home to take care of them or enlist in the services of a daycare center. Of course no one can take the place of the children’s mother or father, but wouldn’t you want peace of mind knowing you can afford to have someone assist in the child raising process?
Life is constantly changing and financial planning can be the key to surviving any major life events that come your way. Prepare for your future today.
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.