Why I'm Buying More Life Insurance in 2022
Should you consider getting more coverage?
- Life insurance protects your loved ones.
- It's important to make sure you have the right coverage.
- Life changes, like an expanding family, may mean you need more insurance.
Life insurance is a vital type of insurance protection that’s important for everyone to have if loved ones depend on their income or the services they provide.
My husband and I each bought life insurance when we got married years ago in order to protect each other financially in case something happened to either one of us. But, in 2022, I intend to buy more life insurance coverage than the amount I've had for a decade. Here's why I'm planning to increase the death benefit on my term life insurance policy.
There's a simple reason I'm buying more life insurance
I have made the decision to purchase more life insurance in 2022 because my husband and I will be adding a second child to our family in March.
We had our first child in 2019 and didn't buy additional coverage at the time because we felt that the death benefit on our existing policy limit was high enough that our child would still be provided for even if something happened to one of us. But now, with adding a second child to the mix, we are concerned the policy limit wouldn't be enough and it could result in some financial struggles if one of us passed.
See, not only do I work and earn income that I bring into the family, but I'm also the primary caregiver for my child because my job has more flexible hours. If I passed away, my husband would need to hire childcare help for not one but two children, and that would be a huge added cost that would take a bite out of the income he'd have remaining after I passed.
Having two children also means we'll need to shoulder the cost of two college educations, which will come at a price I shudder to think about when my kids reach college age decades from now. I don't want to leave my family struggling, so I'm going to be contacting my life insurance provider and taking steps to increase the amount of the death benefit my family would receive if something happened to me.
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Life changes may involve a review of life insurance coverage
Any time a person goes through a major life change, it's a good idea to review life insurance coverage and make certain that it is still going to provide enough protection.
The change in my life happens to involve having a baby, but many other shifts in circumstances could call for the purchase of additional insurance protection. This could include marriage, assuming the responsibility of care for aging parents, adding a new dependent to the family, becoming the family's sole breadwinner, or divorcing.
It's important not to assume that just because a life insurance policy is in effect that there's no additional changes that will need to be made. By taking the time to re-evaluate current coverage needs on a regular basis, it's possible to ensure the right protection is always in place so an untimely death won't lead to financial disaster for those who are left behind.
Our picks for best life insurance companies
Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.
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