Reasons to get an annual review

Look back at the past year. A lot of changes probably come to mind. Perhaps you went from being single to happily married or welcomed a new addition to the family? Did you get a raise? Take a new job? Or did your kids recently go to college?

Whatever the changes may be, they could have a tremendous impact on your monthly balance sheet. That’s why it’s always a good idea to get an annual review of your life insurance coverage. By regularly assessing your needs, you’re helping to ensure your family members are protected.

Work with an agent

Reach out to a life insurance agent, and they’ll walk you through your current life insurance coverage amount and answer any questions you may have about the present and the future. They’ll even make sure your beneficiaries are up to date. After analyzing your recent changes you may need to do one of these three things:

• Increase coverage: You may consider increasing your coverage if you have new financial responsibilities, such as a new baby or a new mortgage. You’ll also want to make sure you have adequate coverage if there are increased financial pressures like college tuition, substantial credit card debt or upcoming retirement plans.
• Decrease coverage: On the other hand, you might want to scale back your coverage if your children have moved out or your mortgage is paid off. Before doing so, however, it makes sense to consider leaving a legacy. You may not have a person who needs your financial support, but you may have a charity or cause close to your heart that is in need of financial support. You could name that charity or cause as the beneficiary of your life insurance.
• Leave your coverage as is: Perhaps your lifestyle changes don’t warrant an increase or decrease to your policy. No big deal. You can still benefit from an annual review – the more your insurance provider knows about you, the better they can serve you every year down the road.

Other considerations

If you’ve taken the necessary steps to make changes to your health or lifestyle in the past year, it may be a good idea to contact an agent. Losing weight, quitting smoking or cutting down on alcohol consumption could end up saving you money in the long run.

Sometimes your needs outgrow the coverage you currently have. That’s why it’s important to reevaluate your needs with an annual review to help determine how much coverage you’ll need.

If you don’t have life insurance, you can take the first step to protecting what matters most to you by using our free needs calculator at AAALife.com.

Remember, our agents are here for you and will work with you to plan for the now and whatever’s next. Learn more about life insurance through AAA at AAA.com/Insurance.

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