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27 February, 2020 0
family walking on beach, increase your life insurance coverage in response to a raise

Why A Raise at Work Should Lead to an Increase in Life Insurance Coverage

Why you should increase your life insurance coverage in response to a raise.

If you’ve just gotten a raise, then you now have access to a better quality of life.  As your standard of living improves, your family’s expectations will increase.  To ensure that your family’s lifestyle isn’t affected in the event of your death, you need to have adequate life insurance coverage in place.  This is why it’s so important to increase your life insurance coverage in response to a raise.

How Can I Increase My Coverage?

When it comes to increasing your life insurance coverage, you have some options.  First, you can speak to your agent and have them adjust your policy to meet your new coverage requirements.  This is the easier option because it does not require you to redo your health evaluation or jump through annoying hoops.

In some cases, your existing life insurance policy cannot be increased.  This means that your other option for increasing your coverage is securing a new life insurance policy altogether.  This process is more difficult as it requires you to shop for a new policy, submit an application, and complete another medical examination.  This option is also likely to be more expensive.  While you will have higher rates when you increase coverage on your existing policy, the cost of securing a brand-new life insurance policy will likely be higher.  This is because you are probably older and less healthy than you were when you got your original policy.  So, not only will you have to pay for your increased coverage, but you will also have to pay more to address your increased risk of death.

This is why and how to increase your life insurance coverage in response to a raise.  Do you have additional questions about your life insurance?  If so, then contact the experts at Fuller Insurance Agency in Southern California.  We are ready to assist you with all your coverage needs today.

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