Do you have a current life insurance policy? It is always a good idea to protect your family from financial hardship in the event of your death. Many policyholders want to know – can you change your life insurance policy? There are a lot of life events that may make you want to change, update or cancel your life insurance policy and we can help answer your questions at Saxton Law Firm in Kansas City, MO.
Yes – you can change your policy and insurance provider at any time. Individuals who want to change their insurance policy need to know that there is no guarantee that a new insurance provider would accept your application – which makes it important to keep your current policy until you are 100% certain that your brand-new insurance policy is set. If you need legal advice on your current policy or the policy you plan to get, Saxton Law Firm can help.
When Should You Change Your Life Insurance Policy?
Now that you know that you CAN change your life insurance policy as needed, you may have asked – when should I change my life insurance policy?
The short answer – whenever your life changes. When you have major milestones in your life, it is important to update your life insurance policy. Important events that may make it important to change your life insurance policy include – a marriage, the purchase of a home, the birth of a child, the death of a spouse, a divorce and a second marriage – are all events that may warrant a change to your policy.
What Parts of Your Life Insurance Policy Should You Change?
We know that you CAN change your life insurance policy and we know WHEN you should change your life insurance policy – but what parts of your policy should you change? Here is a quick look at the parts of your life insurance policy that you may want to change when it is time to update your policy.
- Beneficiary – The first thing you may want to consider updating on your policy is the beneficiary when your family status changes. When you get married or have a child, you may want those individuals to be named your beneficiary in the event of your death – or if you get a divorce, you may want to remove your former spouse as the beneficiary on your policy.
- Type of Coverage – Do you have a term life insurance policy that only lasts 20 years? Does your term life insurance policy end at a certain age? You may want to extend your life insurance coverage and switch to a longer term life insurance policy or consider a permanent life insurance policy.
- Insurance Benefit – Do you have multiple children that you provide for? Maybe you have your own children and step-children? You may need a larger life insurance benefit than your previous policy to provide financial support for your family when you are gone. When you get married or have a child, you may want to consider increasing the benefit amount of your policy.
You may have questions about your life insurance policy. Questions that include – can you change your life insurance policy? We can help answer all of your life insurance policy questions here at Saxton Law Firm. Contact Saxton Law Firm today to schedule a FREE legal consultation on legal practice areas that include small business law, life insurance and homeowners insurance!