Updating my life insurance - Career edition
Published on Mon May 21 2018 in Money
Thinking about life insurance can be tough, causing many people to procrastinate or even avoid getting covered altogether. However, even if you have taken out a policy, it might not be any easier or more enjoyable to think about these things. You may want to “set it and forget it,” only remembering your policy when it shows up on your bank statement.
As much as you might hate thinking about your life insurance needs, there are times when it may make sense to review the details. Here are three times in your career when people might think about reviewing their life insurance.
Getting a promotion
Moving up the career ladder is a big step, one that often comes with a raise in pay. Earning more money may also mean lifestyle changes for you and your family. Whether these are big (buying a new home) or small (adding a few luxuries to the grocery trolley), people may rethink their life insurance benefit after a promotion.
Taking a career pause
There may be times when you or your partner might need to step away from their job. Parents often do this when they’re expecting a new baby or after adopting a child, but needing to care for an ill or aging family member is another common reason. This could lead to reviewing your expenses - including your life insurance.
This could be a good time to speak to your insurer about your cover and your premiums, as if your career pause is temporary, you may find it harder or more expensive to get covered again in the future. Factors such as age and health can affect life insurance premiums. Replacing a cancelled policy could potentially be more expensive due to your age. You might also be subject to exclusions, because of a health issue that could now be considered a pre-existing condition.
Reaching retirement
Retiring is a major life milestone—one that may signal other big changes. These might include paying off a mortgage, downsizing your home or traveling more. Now may be a time when you think about updating your life insurance policy to match this exciting time in your life.
Thinking about your policy?
No matter what stage your career is at, you may be looking to review your life insurance. If you are unsure about your needs now or in the future, you should ask a financial adviser to help. If you need to make changes to your Momentum Life policy, simply contact us.
About Author: Momentum Life is a leading provider of Life insurance and Funeral insurance in New Zealand.
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The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.