Promoted at Work? Have You Thought About Increasing Your Term Life Insurance?
When is the last time you reviewed your term life insurance policy? Has it been a few years or longer? Have you been promoted at work since you first bought your term life insurance policy? If you answered yes to these questions, then now is a good time to dig out your term life insurance policy and review your coverage. Along with the promotion, usually your income increases. While there are many things you can do with your increased income, make sure you consider increasing your existing policy or purchasing an additional one.
At Pivot, being promoted is what we refer to as a pivotal moment. It marks a point in time where there is a major change in your life. You want to make sure as you go through life and all the changes it will bring, that you continue to prepare for your future. Many clients I speak with purchase life insurance based on their budget, which makes sense. We all have budgets that we deal with and you want to make sure you can afford paying for your term life insurance month after month or year after year. Generally, a promotion brings with it new responsibilities but also a new income level. So take the time, from a financial standpoint, to evaluate where you are today and determine what your new promotion means to you and how much additional money could you apply to term life insurance.
Let’s say you purchased a 15 year term life insurance policy 10 years ago, there are now 5 years left. At the end of the 15th year, the policy may be able to be renewed, if it’s a renewable policy, but usually at a higher premium. And you may expect premiums to increase every year once you have renewed the policy. Based on your promotion, you could look at purchasing another 10 year term policy. This way when the original 10 year term policy runs out, you will already have another policy in place that has a level premium. Now you do not have to worry about being without coverage. Yes, the new 10 year policy will have a higher premium but it will be the same price each month for the 10 years. With your increased income, you hopefully can afford the new premium that secures protection for another term period.
A sincere congratulations to you on your promotion! Remember now is the perfect time to revisit your current life insurance policy.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.