Three Keys to Effective Life Insurance

by SCarney on ‎04-12-2016 04:12 PM - last edited on ‎05-04-2016 10:16 AM by Lithium Technologies (6,116 Views)

See how the answers to these questions can help you get the most from your life insurance.

 

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Do you have enough coverage?

There are 58 million U.S. households that don’t have enough life insurance, according to global research group LIMRA. If your life insurance is going to provide adequate coverage, you’ll want to consider how much your beneficiaries will need. Items to consider are your current debt, such as a mortgage or credit cards, your family’s living expenses for several years and long-term financial goals like retirement or college education.

 

Have you considered recent life changes?

Maybe you lived in an apartment when you purchased your life insurance, but now you have a home and a mortgage. Or perhaps you’ve married or started a family. If your circumstances have changed, it’s possible the policy you bought years ago doesn’t accurately cover your current needs. Depending on what new expenses you’ve got, you may want to consider adding to your coverage. It can last as long as you need it—until the mortgage is paid or the kids finish school.

 

Do you have the right beneficiaries?

Check your policy to see who you listed as a beneficiary and update it if necessary. Its also a good idea to name a contingent beneficiary, someone who will receive the benefits if the primary beneficiary passes away before you. By keeping your policy up to date with your beneficiaries—and letting those people know the details of your policy—you can help make sure the money goes where you want it to without delay or confusion.

 

Disclaimer/Legal Footnote:

AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract.

Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. ALMI-23326-216-XX

For a policy review, stop by any AAA office or visit AAA.com/Life.

 

A version of this story appears in the May/June 2016 issue of AAA Living magazine.

 

Image credit/source: Masterfile

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