Why life insurance remains important as you age.
Most people get their life insurance policies in their 20s and 30s in order to protect their families. However, as you age and your circumstances change, you may find yourself questioning the value of life insurance. If you are considering cancelling your life insurance, keep these considerations in mind.
- Changing Circumstances
If your children are grown and if you no longer have a home mortgage to worry about, then your life insurance policy might seem like a waste. However, keep in mind that a change in your circumstances could make having life insurance a necessity. For instance, while your children might be grown, there could be a situation in which you become guardian to your grandchildren. If this is the case, then you’ll need life insurance to address their college tuition or any debts they might incur. Additionally, even if you are at retirement age, your partner might not be. You should have enough coverage to make sure they have adequate income to help them get by in case you die. Remember, if you cancel your policy only to have your circumstances change, then be aware that a new life insurance policy will have higher monthly payments than your previous policy.
- Risky Financial Situation
If you are faced with a serious financial situation, it can seem like cancelling your life insurance is the best way to save. However, keep in mind that cancelling your insurance can place your family in a risky financial situation in the event that you pass suddenly. If your family is in an unstable financial situation, then it is often a better investment to keep your life insurance coverage. This is the only sure-fire way to protect your family from the financial pressures that would accompany your passing.
- Money Saving Alternatives
If you are struggling to afford your life insurance, then there are ways that you can reduce your costs. For instance, your insurance company may agree to reduce your coverage in exchange for lower premiums. Additionally, you could also re-evaluate the coverage that you and your spouse have. If you each have your own life insurance policies, it might be more cost-effective to switch over to a joint policy. While the cost will depend on your age and relative health, this is still a good option to explore.
Ultimately, it is up to you to determine whether life insurance is still worth it for you. If you have questions regarding your life insurance policy, trust the experts at Pierce Insurance Group to offer you assistance and advice that you can trust. Contact us to get started today.