Life Insurance Questions & Answers: Life Events
Life Events Q&A
Showing 4 questions
How often should someone review or update their life insurance policy?
You should review your policy with your insurance agent at least once per year. Different life changing events can cause your insurance needs to change. You may need more or less depending on your circumstances. Another important aspect is to make sure your beneficiaries are up to date. Changes in family dynamics may make you want to change beneficiaries. Remember, whoever's name is on the contract will receive the proceeds from the policy.
What happens to your life insurance policy in a divorce?
In a divorce, a life insurance policy's status depends on whether it has cash value. Term policies hold no cash value, while permanent policies are treated as marital assets. Ex-spouses must also update beneficiaries, and courts often require policies to secure alimony or child support.
At what age should someone start thinking about life insurance?
There isn't a set age when someone should start thinking about life insurance. However, if someone is old enough to ask this question, they are old enough to think about life insurance. There are many variables, of course.Folks who are about to have a new child, buying or building a home, between jobs, don't have enough life coverage with their current job, etc--at ANY age--can consider life insurance.
If someone is thinking about life insurance for themselves, it's a good idea to consider getting covered when you are young. Premiums will be lower and whole life policies will maintain a static premium as long as they are paid (and build cash value).
As many parents will have policies on their children until they are adults (and beyond frequently), many people will start thinking about a policy for themselves when they begin to become more autonomous.
What happens to my life insurance if I change jobs?
If the coverage is offered by an employer and you leave that company, typically the life coverage ends. That’s why we recommend having your own personal policy.Browse Other Questions & Answers
How Life Insurance Works (23) Coverage (16) New to Life Insurance (13) Eligibility (12) Advice for Beneficiaries (10) Financial Planning (7) Advice for Families (7) Rates and Costs (7) Term Life (5) Whole Life (5) Riders and Addons (5) Life Events (4) Retirement (2) Universal Life (2) Agent Interview (1) Final Expense (1)Have a Life Insurance Question of Your Own?
Submit your question to our nationwide community of licensed life insurance agents.
We'll only use your email to notify you when a licensed life insurance agent answers your question.