At Epic Insurance, serving the greater Lees Summit, MO area, we are often asked how much life insurance a person should carry. However, there is not a one size fits all answer. Your life insurance policy may need to be increased or decreased as changes occur in your life. This may lead you to wonder when your life insurance policy should be increased. Here are a few of the times when you should think about increasing your life insurance policy.
You Are Adding to Your Family
One of the reasons you should increase your life insurance policy is because you are adding to your family. Your household expenses rise with each baby you have. As such, you need to increase your life insurance policy after the arrival of each of your children.
You’ve Taken on New Debt
Life insurance can help you spouse pay down debt if you pass away. As such, if you have taken on new debt, either by buying a new home, taking out a second mortgage to renovate your home, or taking out student loans to go back to school, you will want to increase your life insurance policy to cover this debt.
Your Pay Has Drastically Risen Since Your Last Life Insurance Increase
The last reason you will want to increase your life insurance policy is because your pay has drastically risen since you last took out a policy or increased it. Most people get used to living to a certain standard based on what they make. If you are making more than you did in the past, your spouse and kids may be used to this lifestyle. If you pass away, you want to ensure they can live the way they have become accustomed to by increasing your policy amount.
If it is time for you to increase your life insurance policy in the greater Lees Summit, MO area, contact Epic Insurance. We can help you determine how much life insurance you should have and then draw up a policy.