Should I Revisit My Life Insurance Policy When I Get a Raise or Promotion?
There are several reasons why you should revisit your current life insurance when you receive a raise or promotion. In life, generally when you receive a raise or get a promotion, your life style tends to change. This can range from driving a newer more expensive vehicle to buying a nicer and larger home. Why should your life insurance coverage remain the same when everything else is improving?
It is important to remember with term life insurance, your coverage amount needs to be at an appropriate level. The more money you earn, the more likely you are to want to live a more luxurious life style. Hopefully, this new life style will be maintained by the surviving spouse after the other spouse passes away.
The best way to determine the amount of life insurance coverage you need is to use a life insurance calculator. This tool will ask you questions and have you enter specific dollar amounts pertaining to income and expenses that you would want to have protected.
Raises or promotions can provide the financial ability to purchase additional life insurance coverage. By doing so, in a timely manner, you would have the additional coverage at a more affordable price, rather than waiting until you are older. Remember, this additional coverage will provide even more protection for your family.
With this extra income that you now have, it would also be a good time to consider purchasing life insurance for your spouse or loved one. This is regardless of whether or not you have a multi-income family or if you are the sole income earner. Your spouse should have life insurance coverage as well, to provide your family protection should they pass.
About the author: Jim Marcinkewicz has been in the life insurance business for over 6 years. He is a big supporter of the American Red Cross and teaches both CPR and First-Aid classes. With two daughters in college, Jim knows the expense it takes to care for your family and enjoys helping others prepare their futures as well. You can reach Jim at 1-800-651-1953 or JMarcinkewicz@Pivot.com.