Life Events Can Change Insurance Needs

02/01/2010

Regardless of whether a person is considering an investment in life insurance or already has a policy, certain life events make it important to weigh one's coverage needs.

The Insurance Information Institute recently pointed out that one such change that typically requires people to revisit their life insurance needs is getting married.

This is because if one spouse is not working and depends on the other spouse for income, it may be important to increase life insurance coverage. Industry experts typically advise people to carry coverage equivalent to five to seven years of their income. This number may vary if one has children or dependent parents.

With that in mind, the organization also reminds people to review their life insurance coverage, as well as their disability protection when a new child is born. The III went on to cite data showing that about 39 percent of people who die prematurely do not have life insurance at all, even though about 40 percent of that population had children under age 18.

While life insurance can help pay for a child's college in the event of a parent's death, it's also important to remember to update coverage information by adding them to the policy.

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