The end of the year typically involves setting New Year’s resolutions for the year to come. But before you can set goals for the future, it’s important to acknowledge what you accomplished in the past year.
Take a moment.
What changes in your life come to mind? Perhaps you went from being single to happily married or welcomed a new addition to the family. Or maybe you got a raise and promotion, or a new job altogether. Your kid could’ve recently started driving or left the family home to attend college.
Whatever the changes may be, they could have a tremendous impact on your monthly balance sheet. And you may not want to do an annual review of your finances—we don’t blame you! But getting an annual review of your life insurance coverage can have a big impact. By regularly assessing your needs, you're helping to ensure your family members are protected, no matter which stage of life they’re in.
New responsibilities can be exciting. They can also mean taking on more risk. If you recently bought a home and have a new mortgage, or welcomed a new baby to the family, then safeguarding for the future is something to consider. You’ll want to make sure you have adequate coverage so that potential financial pressures like college tuition, substantial credit card debt, or ongoing mortgage payments on only one income aren’t a burden your loved ones have to shoulder on their own.
On the other hand, you may be experiencing relief from having fewer responsibilities. Maybe you finally paid off your mortgage, or maybe you’re no longer financially supporting your children. Keep in mind that while you may not have direct dependents relying on you at this moment, your life insurance policy can ensure you leave a legacy for your loved ones.
There are different ways to leave a legacy. For example, you could do so by making sure a charity or cause close to your heart has much needed financial support in the future. Your beneficiaries may be individuals in your family, or you could name that charity or cause as the beneficiary of your life insurance.
The old adage “if it isn’t broken, don’t fix it” may apply when it comes to life insurance, too. Perhaps your lifestyle changes don’t warrant an increase or decrease to your policy. If that’s the case, you can still benefit from an annual review. Policies and their impact are always changing. You could be paying more than you need, when you could put that money towards a different investment, like annuities.
Or you may not be as thoroughly covered as you thought. The more your insurance provider knows about you, the better they can serve you down the road and throughout every stage of your life.
You may have read this far and realized that you still aren’t sure which of the three steps above is best for you. In that case, ask yourself this: Have you taken steps to make changes to your health or lifestyle in the past year? Losing weight, quitting smoking, or cutting down on alcohol consumption could end up saving you money on your life insurance coverage in the long run.
If you don’t have life insurance, you can take the first step to protecting what matters most to you by using our free needs calculator to see how much coverage you may need.
Whether you have a current policy or haven’t decided which type of coverage is right for you yet, it may be a good time to work together with a AAA life insurance agent to reevaluate your needs with an annual review. Our specialized agents are here for you and can work with you to determine how much coverage makes sense for you and your family now, while keeping the future in mind.
Looking to save on your life insurance coverage? A health screening is a critical part of the application process that can help you get your best rate.
As we grow and change, the choices we make in life often mirror our needs. Your financial protection needs work much in the same way. What you need in your 20s is not likely to match what you need in your 40s, which will further evolve as you approach your 60s and beyond. Luckily, AAA Life has solutions for you every step of the way.
Did you recently tie the knot? Or maybe the big day is fast approaching. It isn’t uncommon for couples to spend a great deal of time and energy planning for their wedding day. What’s more rare is the likelihood that couples put time and energy into discussing their financial future and how to approach finances in their marriage.
There’s no one-size-fits-all solution when looking at the needs of Generation X and their life insurance policies. Whether you’re planning to retire in the next few years, still have kids living in the house with years of college tuition checks still to come, or anything in between, now is the best time to act to help protect the futures of those that you care about.
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