New Year Finances: Four Life Changers that Affect Your Life Insurance
ROCK ISLAND, Ill., Jan. 13, 2015 /PRNewswire-USNewswire/ -- The dreams you make and goals you set in 2015 need to be financially secure. New Year plans and certain life events require a second look at your life insurance protection: a new child, new home, or new job means it's time to adjust your coverage for your family, home, and income. "The most important role life insurance plays as your life changes is the protection it provides the surviving family members who have monthly bills or college dreams that may be in jeopardy if a parent dies," advises Cynthia Tidwell, CEO and President of Royal Neighbors of America, one of the first women-led life insurers in the U.S. "Revisit your life insurance policy to see if your family has enough to cover daily expenses like childcare and house payments so that you can welcome 2015 without worry."
4 Life-Changing Events that Change Your Life Insurance:
- Getting married: There are two of you now. A new spouse means that both of you should consider economical ways to protect each other's future if one of you were to die prematurely. Term life insurance is often a simple and cost-effective way to ensure a surviving spouse can pay bills or pursue her/his dreams.
- Having a baby: Protecting a child's future is one of the first considerations new parents make. Whole or permanent life insurance can help pay for the family/child expenses if a parent dies prematurely. In addition, cash accumulation options can help pay for future college expenses. Also, consider a whole life youth policy that can provide life insurance coverage for children. When they are young and healthy, premiums are more affordable. And, an illness later in their life could make insurance coverage hard to get.
- Buying a new home: Whether buying your first home, a larger second home, or building your dream house, make sure your life insurance will cover added expenses of higher mortgage payments, or possibly pay off that mortgage, if something were to happen to you or the primary income earner in the family.
- Getting a new job: Any change in income is a good reason to re-evaluate your life insurance coverage. Life insurance helps a family meet expenses such as mortgage payments and childcare while the surviving spouse gets back on her/his feet. Based on the income you rely on, make sure you have enough life insurance to protect that income in the event one spouse dies prematurely.
Calculate how much life insurance you may need.
LIMRA reports that one in three U.S. households have no life insurance at all. For those that do, they only own enough on average to replace household income to pay expenses for 3.5 years. The recommended industry rule of thumb starts at twice that from 7-10 years.1 "Income protection and financial security for your family should be key parts of any financial plan," affirms Ms. Tidwell. "Being money smart means discipline and planning for contingencies so that your loved ones are covered."
Royal Neighbors of America, one of the nation's largest women-led life insurance organizations, empowers women to meet the needs of their families with annuities and life insurance products such as whole life, term, final expense, and universal life. One of the most financially secure insurance carriers in the industry, it has the financial strength and stability to ensure its nearly 200,000 members are protected when the expected, and unexpected, happen. In addition to insurance products, Royal Neighbors provides member benefits at no additional cost which currently include scholarship opportunities, health and retail discounts, and participation in volunteer activities that give back to communities through the organization's local chapters. Royal Neighbors' philanthropic efforts are dedicated to changing women's lives through its national programs, including the Nation of Neighbors ProgramSM, and through the Royal Neighbors Foundation, a 501(c)(3) public charity.
Royal Neighbors is headquartered in Rock Island, IL, with a branch office in Mesa, AZ. For more information, visit www.royalneighbors.org or call (800) 627-4762.
1LIMRA, Trillion Dollar Baby - Growing Up, 2011
Contact: Rita Toalson, FLMI, ACS
(309) 732-8376
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SOURCE Royal Neighbors of America
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