THINK Insurance & Financial Services, serving the greater Pomona, CA area, offers life insurance policies for our clients. One of the questions we often get asked is when someone should consider increasing their life insurance policy. While many life events warrant an increase in life insurance policy amounts, one of the most overlooked is after someone’s wages have increased significantly. Read on to learn why it may be essential to increase your policy after this happens.
Why Should You Consider Increasing Your Life Insurance Policy If Your Wages Have Significantly Increased?
You should consider increasing your life insurance policy if your wages have significantly increased because your current policy is likely based on your older, lower wages. A life insurance policy helps to cover your final expenses, but it also helps to provide for your family if you pass away unexpectedly or early in life. This allows your spouse to keep a roof over their head and helps to make up for the lost wages due to your death. If your wages have increased, your life insurance should increase to ensure your family can continue to live the quality of life they have become accustomed to should you unexpectedly pass away.
You should consider increasing your life insurance policy after your life changes, including getting married, purchasing a home, having children, or even if your wages have increased significantly. If it has been a while since you last increased your life insurance policy and experienced significant life changes, now may be the perfect time to take a look at your policy and consider increasing it. Reach out to THINK Insurance & Financial Services, serving the greater Pomona, CA area, to learn more about increasing your life insurance policy.