Throughout your life, there are many reasons why you would want to increase the amount of your life insurance policy. You may have gotten married, gotten a raise at work, or had a new baby. But there are also times when you may want to decrease your policy limits. At Anchor Insurance Agency LLP, serving the greater Plymouth, MN area, we recommend a decrease after these life events.
You Have Paid Your House or Major Debt Off
When you have paid major debt off, such as your home, and you do not plan on accruing more debt, you should lower your life insurance policy. The amount of your policy should take into account your debt. This will help your spouse or kids live debt free if you pass. However, once your debt is paid off, you no longer have to worry about this, meaning you can lower your policy.
You Have Retired
Once you retire, your income will decrease. When this occurs, you learn to live off of less. As such, you can reduce your life insurance policy amount around this time as well. This will also help to decrease your premiums, which helps your life insurance policy fit within your new budget.
Your Children Are Out On Their Own
Lastly, you may want to think about decreasing your policy limits when you no longer have kids to take care of because they are out on their own. Some people do this once their kids graduate high school, while others decide to do it only after their kids finish college and get jobs. It is up to you to decide when, but once you are confident you won’t have to pay for your kids any longer, you can decrease your policy limits.
Trying to determine how much life insurance you should have can be challenging. But Anchor Insurance Agency LLP, serving the greater Plymouth, MN area, can help you with this task. Call us today to set up an appointment and we can help you determine how much life insurance is right for you.