Updating my life insurance - Milestone edition
Published on Wed May 9 2018 in Money
Life is full of major milestones that prompt people to buy life insurance. From getting married, to buying a home and having children, you may already have a policy in place. However, as life changes, your insurance needs may change too.
Here are three times when you may think about updating an existing life insurance policy.
Getting serious in a relationship
People often don’t like to mix love and money. However, as the relationship gets more serious, you may begin to combine finances and assets with your significant other. As you begin to share more as a couple, it might be time to update your life insurance policy to match this growing commitment to each other.
Many couples buy life insurance after they’ve married, but the significance of this life milestone is shifting. Partners are often together for years before tying the knot—if they decide to marry at all. Couples may cohabitate before marriage, and during this time may mingle their bank accounts, buy property together or start sharing other financial assets.
If you’re in a serious romantic relationship, it may be time for your life insurance policy to reflect the life you’re building together. Updating the policy beneficiary to include your significant other may be appropriate, particularly if they rely on your income to help pay the bills.
Growing your family
Having children is a one of the most common motivators when it comes to getting life insurance. New parents naturally want to protect their kids, and guarding their financial future may play a part in this. But what about when the second or third baby—or more!—comes along? As your family grows, your life insurance may need to as well.
Raising a child can be expensive, and some of the costs could multiply as you have more kids. This sometimes comes as a surprise to new parents, who may have made their best guess to begin with when selecting a life insurance benefit amount. If this was the case for you, don’t sweat it! You may be able to update your cover level to better match the needs of your growing family.
Renovating the house
Home renovations are on the rise in New Zealand as Kiwis seek more space for their growing families, floorplans that better suit their lifestyle or modern upgrades in older houses. These changes may add value to your property, but may also mean a review of your life insurance.
Major renovations are generally paid for with loans, and even smaller jobs may require home owners to borrow a little to finance the work. Home equity loans, a personal line of credit or even credit cards are popular options.
Thinking about your policy?
No matter what stage of life you're in, 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.