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Births, Mortgages, & Raises - When to Increase Your Life Insurance

Births, Mortgages, & Raises - When to Increase Your Life Insurance

As adults, we know that nothing’s guaranteed. Life is dangerous and unpredictable. In 2023, 112 Americans died each day in traffic collisions–more than two fatalities for every state.

Difficult as it is to ponder, we have to prepare for the worst. Life insurance serves as a vital safety net. But if we’re not careful, our needs may outgrow our coverage–a risk we simply cannot take.

Life happens fast. To keep your life insurance up to speed, consider increasing coverage in these moments.

When Should I Raise My Life Insurance? - A Pepper, Johnstone Guide

For over half a century, Pepper, Johnstone & Company has paired Alabamians with the protections they need for peace of mind. If you don’t have life insurance yet, we strongly recommend using our instant life insurance quote tool to get started.

The Birth of a Child

Any parent will tell you that children are life-affirming–and expensive. When rethinking your coverage after the birth of a child, keep in mind that there are a lot of antiquated guidelines out there. Instead of making guesses based on general rules of thumb, use our life insurance calculator to determine the best coverage adjustment for you!

This amount should cover funeral expenses, pay for needs as children grow up, and might even include money for higher education. That said, everyone’s needs are different. Speak with an independent insurance broker to find a plan that fits your hopes for your children.

A Compensation Adjustment or Raise

Congratulations! Your hard work paid off. But now that you’re making more each year, you’ll need your coverage to reflect that.

By multiplying your annual salary by 10 (as outlined in the formula above) you’re subsidizing your family with 10 years of income. If your family is accustomed to a certain lifestyle, additional coverage might be considered to keep them in comfort.

Loans, Long-Term Debts, & Mortgages

Lending is the jet fuel of American life. Auto loans, mortgages, and credit cards empower us to buy today and pay tomorrow. But when tomorrow’s never guaranteed, adjustments in coverage need to be made. In many cases, debt follows us even after life ends.

If you or your family have taken on debt, you might consider adding your share of that debt amount to your coverage. Depending on your circumstances, adding the entire loan amount may be advisable.

Life Insurance FAQs

It’s difficult enough to talk about financial matters–doubly so when adding life and death to the equation. But life insurance is too important to avoid the subject altogether.

Here are a few of our most common questions, asked and answered.

How Much Life Insurance Do I Need?

Your ideal coverage amount depends heavily on your circumstances. Single adults should consider funeral expenses, long-term debts, and the financial needs of parents or siblings. Those who are married should consider the needs of their spouse, and those with children should add at least $100,000 to their coverage for each child.

At the end of the day, the best life insurance plan is one that’s tailored for you. Speak with an independent insurance broker for the best coverage and pricing.

Do I Need Life Insurance?

Yes! Life insurance is advisable regardless of your circumstances. At a minimum, life insurance pays for funeral expenses, but it can also pay for end-of-life care. For single entrepreneurs, life insurance can keep your business afloat and support your employees.

To spare your loved ones mental and financial strain, consider a modest policy at least.

What Are the Benefits of Life Insurance?

To many, the primary benefit of life insurance is sparing loved ones from financial strain and hardship. Our lives are built around our finances, and the loss of a spouse can quickly burden a grieving family. A life insurance policy is your personal “love letter” to your family and loved ones and can provide a lasting legacy.

At a minimum, life insurance pays for:

  • End-of-Life Costs: funeral expenses, some medical bills, and other costs associated with the settlement of your estate
  • Long-Term Debts: mortgage expenses, credit card debt, and others
  • Daily Expenses: the bills, groceries, shopping, education, and care of loved ones and dependents

Depending on your hopes for your family and your children, additional coverage can be purchased.

Adjust Your Life Insurance Coverage for Maximum Protection

Life gets away from us, and life insurance can be a difficult topic. If you’ve gotten married, been promoted, had a baby, or bought a house since you purchased an existing policy, now is the time to get current and stay that way–for the sake of your loved ones.

To find the coverage you need, contact us online. You can also call 866-872-0431 for Athens or 866-872-0431 for Huntsville.

Protect Your Family & Your Legacy with Pepper, Johnstone & Company

For more than 50 years, Pepper, Johnstone & Company has delivered peace of mind for Alabamians and others throughout the Southeast. Remember to adjust your coverage and protect your family. Find a plan that reflects your most up-to-date circumstances today.