By Farm Bureau Financial Services on October 23, 2024
5 Telltale Signs you Should Increase Your Life Insurance Coverage
Do you need to increase your life insurance coverage?
Experts often recommend adding life insurance coverage for key life events, and it’s important to be on top of those changes.
Your recommended life insurance coverage depends on your stage of life, your family size and status, your income and much more. When those things change, your life insurance needs change. You can even increase your term life insurance
coverage by purchasing a new policy.
If any of the following five things have happened to you, contact your Farm Bureau Financial Services agent to discuss increasing your life insurance coverage.
1. Your Family Has Grown
When you get married, you make a commitment to care for each other. That includes individual life
insurance policies that can help care for a spouse should the other pass away.
Adding a child to the family is a joyous celebration, but it’s also expensive. The average cost of raising a child is more than $200,000. If one partner passes away, it can suddenly be a struggle to have enough money to pay for all those expenses. An appropriately sized life insurance policy can help ensure your partner has a safety net and your children will be supported.
2. Your Financial Commitments Have Increased
Having the right life insurance coverage gives you peace of mind that your financial commitments wouldn’t overwhelm your family if you were to pass away. If you’ve recently added to your financial responsibilities, such as by starting a business, funding the care for an aging relative (either at home or in a facility) or purchasing a new home, you should consider increasing your coverage.
3. Your Family’s Employment Status Has Changed
Congratulations! You’ve gotten a promotion or a significant raise. That change signifies the increased value you bring to your employer — and it changes how much income you bring to your family. When your paycheck increases, consider changing your coverage to account for your higher income.
You should also consider increasing your coverage if your spouse is no longer working outside the home. Paycheck replacement is an important reason many people have life insurance; if yours are the only earnings, a higher level of coverage could help alleviate the stress of your partner needing to immediately find a way to support your family if tragedy strikes.
4. Your Long-Term Needs Have Changed
The purpose of life insurance is to care for your loved ones even after you pass away. If someone you care for has been diagnosed with a chronic disease that requires additional care over their lifespan or has suffered a life-changing injury, an increase in your life insurance coverage can help provide them with the ongoing support they need.
5. Multiple Vehicle Discount
Do you have more than one car in your household? You can save money by bundling them on your Farm Bureau Member’s Choice policy. On top of the convenience of keeping everything in one place, having multiple vehicles on your policy will lower the rate on each car.
Protect the Ones You Love
Talk to a Farm Bureau Financial Services agent if you have experienced any of these life changes or if you think your life
insurance coverage doesn’t meet your needs. Increasing your coverage can be an easy way to achieve the peace of mind
that comes from knowing the ones you love are protected. To learn more, contact an FBFS agent near you.
