This content is sponsored by MOAA Insurance Plans, administered by Association Member Benefits Advisors (AMBA).
Just like most health practitioners recommend you get an annual exam to make sure you’re staying healthy, most financial experts suggest you annually review your life insurance needs to make sure you’re adequately prepared for the future.
Now — while September is Life Insurance Awareness Month — is a good time to do so. Some things to consider:
Do You Have Enough?
If you have loved ones who depend on you, then you need to consider the impact your death could have on them. If you don’t have life insurance yet, you should obtain enough insurance to adequately replace your income and other financial contributions you make to your family.
If you already have life insurance, you should reevaluate the amount of coverage you have. What you purchased last year, 5 or even 10 years ago may not be enough to cover what you need today.
Has Anything Changed in Your Life?
Marriage, divorce, children, job changes or promotions, buying a new home, retiring among others can impact your life insurance needs.
For example, if you purchased coverage when you were a Mid-Grade Officer with a young family, your insurance needs have probably increased as you moved up to Senior Officer and your children are nearing college. However, if you’re closer to retirement and your children are now out on their own, your insurance needs have probably decreased. Here are some examples how your different life stages may signal a need to review your life insurance needs.
Could the Current Economy Be Impacting You?
COVID-19 has significantly impacted the economy this year. Plus, the dollar just isn’t going as far as it used to. Inflation and the current economic conditions may have reduced the actual value of what your life insurance was initially meant to cover.
How Is Your Health Now?
If you’ve lost weight, lowered your cholesterol, quit smoking or are otherwise healthier now than when you first obtained life insurance, you could be paying too much. Because people are living longer, many insurance companies are reevaluating their rate tables—this means you may qualify for a lower rate if you apply for new coverage.
No one wants to think about the unpleasant reality of their own mortality and the subject of life insurance. But you have to for the loved ones that rely on you, your income and all you do for them.
If you’re looking to buy life insurance, check out these Top 10 Tips for Buying Life Insurance.
If you determine you need to purchase coverage or increase your coverage, your MOAA membership provides you with access to affordable MOAA-sponsored life insurance plans. Visit moaainsurance.com for more details.