So you’ve managed to get life insurance that seems to be working out okay for you. If you’re not 100% satisfied it might be a good time to review things. When it comes to life insurance, it can be a good idea to review it and make sure that you’re still getting the right cover.
Life has a habit of changing a lot. Life insurance that you get today might not be right for you in a few years time. It’s important to be familiar with some of the situations that could mean that you need to make a change to your policy. In this article, we’ll go through some of those situations and what you can do.
How can you make changes to your life insurance policy?
As you might have guessed one way to make changes is by speaking with your insurer. Depending on the change itself it could be straightforward. This could be the case if you are looking to either decrease or increase your benefit amount.
With many life insurance policies, it’s a case of a simple phone call. You can get in contact with your insurer. From there you can apply to increase or decrease how much you would like. If your application is successful your insurer will then adjust the premium amount based on how much the benefit changes. That’s it!
Now, of course, there are some things that you should bear in mind. If you want to make a change, it’s not always guaranteed. There will be an application process to make those changes. Essentially it does really depend on the insurer themselves so if you’re thinking of making changes you should speak with them directly.
When should you make changes to a life insurance policy?
As we’ve said already it’s important to review your life insurance policy every few years. Yet, there could be certain times that are vital for making a change to your policy. Here are some of the situations that could be a good time to think about making changes:
Getting a mortgage
Buying a house can be a stressful time and it can take a long time. You invest a lot into getting and building up a home for your loved ones. It makes sense that you would want to protect it. Some lenders might even require you to have a life insurance policy in place in order to get the mortgage. There are certain types of life insurance that are specifically designed with mortgage holders in mind. You may already know this but it’s important to make sure that if there are any changes to your mortgage that you notify your insurer. Increasing the benefit amount could mean the difference between keeping a house or losing it.
You can also revisit this as time goes on. As your mortgage decreases, you can look at reducing your life insurance benefit. If you decided to go for a decreasing term life insurance policy it will do this automatically as time goes on.
Starting a family
Protecting your loved ones could be the main reason why you got life insurance in the first place. As your family grows it’s important to know that the protection you have is still enough. This works too as your family grow up and become less dependent on you.
Changes in Circumstances
Sometimes changes can be unwelcome. It’s not always smooth sailing in life and it’s important to know that if you need to decrease a life insurance policy it’s completely normal. This could be as a result of a reduction in income or a loss of a job. It could make sense in certain circumstances to try and reduce costs. With many life insurance companies, it is straightforward to decrease the benefit amount.
Changing the Beneficiaries
One unfortunate situation that could result in a change in life insurance is divorce. This is can be the case if you happen to have a joint life insurance policy. Unfortunately, in most cases, you will not be able to divide a joint life insurance policy. The policy will have to come to an end in the instance of divorce.
Another thing to bear in mind is that the person who receives your life insurance benefit will need to change. Making this change will depend on your life insurance provider. It will be important to speak with them as soon as you know you need to make the change.
Choozi is here to help
Change can be scary no matter when it happens. It’s important to know that we at Choozi are here to help you get through it. With our comprehensive search, you’ll be able to manage your life insurance. We are 100% impartial and dedicated to finding the best possible insurance policy for your situation. Change doesn’t have to be scary, especially when you’ve been Choozi.