Life insurance is one of those things that we all know we should have, but often put off until itâ€™s too late. If youâ€™re like most people, you probably bought a term life insurance policy when you were first starting out in your career. And, chances are, you havenâ€™t revisited your policy since.
But life changes. And as it does, your life insurance policy should change with it. Here are a few tips on how to make the most of your term life insurance policy:
1. Review your policy regularly
Your life insurance policy is not a set-it-and-forget-it kind of thing. You should review your policy at least once a year to make sure it still meets your needs.
2. Increase your coverage as your life changes
As you move through different stages in your life, your life insurance needs will change. When you first buy a policy, you likely wonâ€™t need as much coverage as you will when you have a family. As your life changes, so should your coverage.
3. Consider converting to a permanent policy
A term life insurance policy will only last for a certain number of years. If you still need life insurance after your term is up, youâ€™ll have to reapply for coverage and may not be approved.
A permanent life insurance policy, on the other hand, will last your entire life. So, if you think youâ€™ll need life insurance coverage into your golden years, a permanent policy may be a better option for you.
4. Shop around
Just because you have a life insurance policy doesnâ€™t mean youâ€™re stuck with it forever. If you find a better policy elsewhere, donâ€™t be afraid to switch.
5. Review your beneficiaries
Your life insurance policy is not set in stone. If you need to change your beneficiaries, you can do so at any time.
6. Make sure your policy is paid up
If you let your life insurance policy lapse, youâ€™ll have to reapply for coverage. And, if you have any health issues, you may not be approved.
7. Use your life insurance policy as collateral
If you have a life insurance policy with a cash value, you can use it as collateral for a loan. This can be a great way to get access to cash in a pinch.
8. Donâ€™t forget about your policy
Your life insurance policy is an important part of your financial security. Donâ€™t let it lapse or forget about it. Review your policy regularly and make sure it still meets your needs.