Life insurance policyholders face numerous decisions throughout the year, but one of the most important is knowing when to update their policy. At Bacon Insurance Group in Richmond, VA, we can help make the process smoother by offering guidance on when and how to make changes to your coverage.
When to Update Your Life Insurance Policy
Major Life-Changing Events
It’s recommended to review and update your life insurance policy at least once a year. However, if that’s not feasible, consider making updates after significant life events have occurred. These events might include getting married, filing for divorce, the birth of a child, buying a home, or receiving a substantial salary increase. These milestones not only mark essential changes in your life but also serve as reminders to reassess your insurance needs.
For example, after your honeymoon, you may want to adjust your life insurance coverage by adding your spouse as a beneficiary. Divorce provides an opportunity to reflect on your new family dynamic and make necessary changes to your policy. Having children introduces new financial responsibilities, which often require increased coverage. Buying a home adds debt that may impact the amount of coverage you need. Similarly, a salary increase opens new opportunities and may influence your insurance requirements.
Changing the Beneficiary of Your Life Insurance Policy
Life changes constantly, and so do the circumstances surrounding your insurance needs. Choosing a beneficiary for your life insurance policy can be challenging, especially with evolving family dynamics. For instance, after getting married, you may want to designate your spouse as the primary beneficiary. Conversely, a divorce offers a chance to reevaluate your choice and make adjustments as needed.
Make Updating Your Policy Simple
Life insurance is essential for everyone, but updating your policy doesn’t have to be complicated. At Bacon Insurance Group in Richmond, VA, our team is here to assist you in making changes as simply and stress-free as possible. Call us today to schedule an appointment and ensure your policy reflects your current needs.
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