Take care of your loved ones with the right life insurance coverage.
When you get a raise at work, you and your family can afford a better quality of life. To ensure that your family can maintain this standard of living in the event of your unexpected death, you need to have the right life insurance coverage in place. This is why you should respond to a raise by increasing your life insurance coverage.
How Much Should You Increase Your Coverage?
When it comes time to increase your life insurance coverage, you should consider the following factors:
- Your total income- Don’t raise your coverage on a whim. Make sure your coverage increase is proportional to your salary increase.
- Where you live- Consider your cost of living when increasing your coverage so your family can continue to cover routine costs like the home mortgage, groceries, gas, and so on.
- How much money your family needs to live- While tedious, you should add up your family’s everyday expenses. You need to make sure that your life insurance coverage is enough to take care of these costs.
How Can I Increase My Coverage?
When it comes to increasing your life insurance coverage, you have some options. First, you can speak to your agent and have them adjust your policy to meet your new coverage requirements. This is the easier option because it does not require you to redo your health evaluation or jump through annoying hoops.
In some cases, your existing life insurance policy cannot be increased. This means that your other option for increasing your coverage is securing a new life insurance policy altogether. This process is more difficult as it requires you to shop for a new policy, submit an application, and complete another medical examination. Please note that this option is also likely to be more expensive. So, if you are able to increase the coverage on your existing policy, you are highly encouraged to do so.
This is what you need to know about increasing your life insurance coverage after receiving a raise. Do you have additional questions about your life insurance? If so, then contact the experts at Duane Weber Insurance, Inc. in Kent, Washington. We are ready to assist you with all your coverage needs today.