Life Events That Typically Create A Need For Life Insurance

5 Events That Should Trigger a Life Insurance Review
Here are the list of top 5 events that typically require purchasing or adding life insurance:

1. Births, deaths, divorces and marriages: Whenever there is a significant life event in your family it makes sense to review your life insurance coverage. That’s because these changes usually shift the reality of your finances big time. In the example above, when Nancy’s husband died, she suddenly became responsible for the entire family. Even though she is in her 50s, she absolutely needed more life insurance.
An example is when your children become independent, your financial burdens are reduced and you might not need as much life insurance. Likewise, if your spouse lands a great job, that might also reduce your need for life insurance.
2. Change in financial situation: In the introduction, I spoke about Jim. He lost his job and life insurance coverage, too. On top of that, he didn’t have the income to keep up the premiums on his existing coverage. So he needed more insurance, but he also needed to cut his premiums. He switched from whole life insurance to term in order to achieve both these goals. In his case, he really had no other alternative.
But other changes in your financial situation might mean you need less life insurance. If you sell a property or business for example, you might suddenly have so much liquid cash that you really don’t need life insurance.
3. Retirement: If your retirement plan works, you will enough money to retire from passive income generated by investments and pensions. Depending on your situation, that might mean you don’t need life insurance anymore. On the other hand, if your spouse wouldn’t have enough to income if you were to pass away after you retire, you might actually need more life insurance.

Additionally, there are other reasons to purchase more life insurance for retirement. This increase or purchase of more life insurance allows the retiree the benefit of taking their entire pension and negates the need for a survivor or pop up option if you pre decease your spouse. The risk of the pop up option of s if your spouse / predeceases you the benefit dies with the spouse. There are some plans that allow a buy back option if this occurs. It is a much more affordable option to just take the full pension and buy life insurance. This of course if your health is good. Buying the life insurance at a younger age is also a smart move if you want to take your full pension. The life insurance also passes to your spouse as a tax free death benefit. 
4. Tax-law changes: Right now, very few people need to worry about estate taxes, but that could change anytime. If you end up having a taxable estate, life insurance is a wonderful way to solve that problem.
5. Every two years: If you read between the lines, you can see that many of these triggering events are impossible to predict. And even if you know something is going to happen, you can’t guarantee that you’ll be insurable when they do.
That’s why the most important trigger is time. Insurance is meant to protect your family against possible future risks. Nobody is going to sell you life insurance when you are in an ambulance or lying in a hospital bed. Sure you can buy life insurance without having a physical, but there are limits. That’s why it’s important to have the right coverage in place against foreseeable risks. By all means, if one of these trigger events happens to you, re-evaluate your life insurance coverage. But better yet, reassess your needs every two years just to be on the safe side.
There are many who do not understand their retirement options and are very surprised when this time finally arrives. You can not underestimate the value of life insurance. In addition there are now living benefits such as the availability of home care riders in the event you need in house home care or nursing home care in the future as well. Contact a independent broker to find the plan that is best for you.

About FuscoInsuranceAgency

Independent Insurance Broker - Personal & Business Insurance, Life, Health, Retirement, Benefits, Bonds Gold & Silver Bullion & Coins Advisor / Sales President of Fusco Insurance Agency, Inc. Providing Solutions For Your Insurance & Retirement Needs! Licensed in NY NJ CT PA MD NC SC TX & FL E Mail: Toll Free: (866) 983-8726 Fax (866) 299 - 7990
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