Your Life Insurance ShouldAge with You

In our chaotic world of unpredictablepossibilities, life insurance provides a blanketof stability. It is a safety net of security thatlets us live in the moment without worrying

about the future of those who depend on us. Itis a quantifiable source of palpable comfortthat promises to take care of our loved ones

should the worst befall us. In our quest toprovide for our family, we often purchasemore comprehensive plans when we are

younger for a variety of reasons. Yet, as ourneeds change our plans remain the same,

demanding higher premiums for coverage weno longer need. The fact is things change, and

our needs 20 years ago will likely not reflectour needs today.

Purchasingan

AdditionalPlan

While the prior example concerns a lack of children, it is just as plausible you may havehad more children, that you need more coverage for a greater death benefit in the event

of your passing. Buying a second plan and adding it to your current insurance agreementis one way of doing such. For instance, if you need to put an additional child through

college, you may want to consider an extra term life insurance plan that only covers upuntil your child’s graduation. That way, your child, once financially vulnerable to yourpossible passing while in school, would now be able to face such a tragic circumstance

with at least the proper tools by his/her side.

Switching Your Beneficiary

In the event of a divorce or remarriage, this is often commonlyneglected. Ensure the recipient of all your earthly possessions is a

responsible individual who will treat your valuables with theappropriate respect. Also, if you are considering naming a minor as your

beneficiary, you may want to think twice. Should your recipient beunder the age of eighteen, the court will delay doling out your benefituntil a guardian is named, which is likely to induce unwanted court

costs and attorney fees.

Upgrading Term Life to PermanentLife

While term life insurance generally makes sense for youngerprofessionals, it is less appealing to an older crowd. With term life

insurance, you cannot cash out the plan. So while you are paying lessin payments and still receiving coverage, you are effectively paying

into nothing. Permanent life insurance plans on the other handincrease in cash value over the time, and allow you to cash out on a

policy. In this regard, you should refer to your specific plan’sguidelines to see if an upgrade is fiscally rational. In any case, be

wary of a conversion deadline. Sometimes the deadline to convert apolicy is earlier than the plan’s expiration date.

Selling Your Policy

If you decide you no longer need life insurance because of a lack of dependents orfor any other reason, you may want to consider selling your policy. It is notuncommon for a third party to be named your beneficiary and to pick up the

premiums until your passing. This way, you no longer have to make paymentsand the third party can cash out on receiving the death benefit. Regardless, make

sure to meticulously review any such transaction with a finance professional inorder to guarantee you are receiving a good deal.

The above courses of action are merely a few of the myriad of options available inupgrading or downgrading your life insurance policy. I hope I could shed somelight on the necessity of refining your insurance coverage as you grow older.