Getting more life insurance when your income increases.
Did you recently get a raise? If so, congratulations! Whether you’ve been working towards it for months or it was an unexpected surprise, getting a big raise deserves some celebrating. While it may be the last thing on your time, getting a raise means you should consider your life insurance. If your family will be enjoying a higher quality of life because of your raise, you will need more coverage to help them maintain the same lifestyle in case something happens to you.
How much should I increase coverage?
The actual amount of your coverage depends on:
- Your total income – How much do you make now?
- Where you live – The cost of living varies by location
- How much your family needs to live on – Get crunching numbers to figure this one out
Once you have all that information at hand, you can arrive at a coverage amount that seems reasonable.
How do I increase my coverage?
Generally, there are two options to get more life insurance – include your current policy or buy a new one. Not all policies can be increased, so it’s worth ensuring that this is possible by talking to your insurance carrier. If your health has decreased since you first took out life insurance, then increasing your current coverage is a good way to go to avoid high premiums.
When you get a raise, it’s worth consulting a professional about which options make the most financial sense for your situation.
To learn more about how best to protect your family’s future, contact the team at Bell Black Insurance. We can help you tend to your life insurance needs so that you get the best value for your money. We serve Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.