New job? New baby? New house? You might really need more coverage.
By now, you are probably aware that the best time to buy life insurance is when you are young and healthy because you have more chances of locking in an excellent affordable rate for the entirety of the term.
Additionally, you will also get the peace of mind knowing your family is covered in case the worst happens.
But then, thing change. Maybe, you went for a 20-years term life plan when you were unmarried with no children. Five years later, you are married, earning substantially more than what it was 5 years back (with a mortgage on a new house), and raising a baby.
If that is the case, the coverage you had 5 years ago may not be enough. So, if you need additional life insurance coverage, here’s what you need to know.
When should you consider additional coverage?
Having a baby
Having a baby is great news – it means more love in your house, but, it also comes with additional expenses, from clothing to food, to education costs down the line, and more.
If you forgot to plan these expenses in your current policy, you should opt to supplement with additional coverage.
Getting a new or a substantial increase in income/salary
You are making more money now – great job!
But remember, along with bigger income comes bigger expenses (like a new car or a new home, etc.). The point is you definitely like to get more coverage in case your loved ones are suddenly left without your larger income support.
Getting a new home
Mortgage and life insurance go hand-in-hand. That is because both are long term financial commitments. When you get a mortgage, you are agreeing to pay your lender a certain sum of money over a period of time.
With a term life plan, you are getting coverage that can cover expenses (such as mortgage) over the same period of time.
It almost goes without saying that you will not want to leave your loved ones on the hook of paying mortgage in your absence without a term life plan that covers the same mortgage value.
You are thinking about long term care (LTC)
It can be for your aging parent, child, sibling, or even for yourself. If you have a sudden uptick in LTC expenses due to a family member’s ongoing medical condition or illness, you should consider additional coverage.
(Note: If you are the one experiencing a medical condition, this might affect your chances of getting additional coverage or the premium you are going to pay for it).
Your partner is not working
If you are in a relationship where both partners are working, you may consider splitting your life insurance coverage accordingly.
But, if this is no longer the case and your partner, for example, is now staying home raising your kid, you should consider supplemental life insurance to factor in the cost of child care.
How to apply for additional life insurance coverage in Mississauga and Toronto
The best suggestion would be to talk to an experienced life insurance advisor who can assess your situation properly before coming up with the right supplemental policy at the best value for money. The consultation is free with zero obligations.
At Trust Life, our advisors have more than 30 years of collective experience providing expert insurance and investment advice to businesses and individuals.
Get in touch with us for any question you have on life insurance and we will be more than happy to guide you further. No fees, no obligation!