You bought a term life insurance policy, checked it off your to-do list and tucked it into a drawer. You’re good now, right?
Not so fast.
Even though you took this step, you could still be putting your family’s future at risk. To protect your loved ones while enjoying a little more peace of mind, it’s important to regularly review your coverage and truly understand your policy.
To start, make sure you’re not making these five mistakes:
1. You Have Limited Coverage That Doesn’t Pay Enough
Having too little term life insurance can be a costly misstep. Ideally, you should choose a policy that fully covers all of your loved ones’ financial needs for five or more years.
2. You Haven’t Updated Your Policy This Year
Life changes. Perhaps you’ve had another child, purchased a home or expanded a business. Need to update your beneficiaries or invest in a larger policy? You can always reach out to discuss your needs.
3. You Didn’t Factor in the Role of a Stay-at-Home Parent
Stay-at-home parents often provide significant financial value to a household, even if they don’t bring in an income. To properly plan, consider things like child care and other caretaking contributions.
4. You Believe Your Employer Has You Covered
Employers sometimes offer short-term life insurance. This is a nice perk, but this coverage is rarely enough on its own.
5. You Think It Can Wait Until Next Year
Don’t put it off. The longer you delay getting a life insurance policy that meets your family’s needs, the higher the risk that you’re not adequately covered.
If you’ve outgrown your current coverage, it’s time for an update. Reach out today to discuss your term life insurance policy options.