Clean Up Your Finances This Spring: Include Life Insurance in the Mix

Spring is the perfect time to declutter, refresh, and renew—not just in your home but also in your finances. The season of renewal offers a chance to clean up financial clutter, refocus on your financial goals, and ensure you’re on the right track for the future. While many people think of cleaning out their closet or organizing their home office, it’s equally important to tidy up your financial life—and that includes reviewing your life insurance coverage.

Life insurance is an essential part of your financial plan, providing financial security to your loved ones in case of your untimely passing. It’s easy to put life insurance on the back burner, but just like other areas of your financial life, it requires regular attention and adjustments. In this blog post, we’ll walk through how you can clean up your finances this spring by reassessing your life insurance and making sure it still aligns with your needs.

1. Assess Your Current Coverage

The first step in cleaning up your life insurance is to take a good look at your current policy. Ask yourself a few key questions:

• Has your life changed since you first purchased the policy? Have you married, had children, or experienced other major life events?

• Does the coverage still meet your family’s needs? For example, if you’ve had a baby, you might need more coverage to ensure your children are taken care of financially.

• Are your beneficiaries up to date? If you’ve experienced a divorce or the death of a loved one, you may need to update your beneficiaries to reflect your current family situation.

  
  

2. Evaluate Your Financial Goals

When cleaning up your finances, it’s important to evaluate your broader financial goals and how life insurance fits into them. For example, if you’re planning for retirement, you might need to ensure that your life insurance policy is helping you achieve your long-term objectives. Life insurance can also be used as a tool for estate planning, wealth transfer, and tax efficiency. Revisit your overall financial strategy and ensure your life insurance fits seamlessly within your broader plans.

3. Review Policy Types and Options

There are several different types of life insurance—term life, whole life, universal life, and others—each with its own benefits. Now is a good time to review which type of policy is best for you. For example:

• Term Life Insurance: Provides coverage for a specific period and is usually more affordable.

• Whole Life Insurance: Offers lifetime coverage and may build cash value over time.

• Universal Life Insurance: A flexible policy that combines life insurance with an investment component.

Consider whether your current policy still suits your needs. You may want to switch policy types or adjust the coverage amount based on your life stage and financial objectives.

4. Consider Additional Riders or Add-Ons

Riders are additional benefits you can add to your life insurance policy to customize your coverage. These can include:

• Accelerated Death Benefit Rider: Allows you to access a portion of your death benefit if you are diagnosed with a terminal illness.

• Child Term Rider: Provides coverage for your children in the event of their death.

• Disability Waiver of Premium Rider: Waives premium payments if you become disabled and are unable to work.

Review the available riders and consider adding those that will best suit your family’s needs.

5. Shop Around for Better Rates

If you haven’t reviewed your life insurance policy in several years, you may be paying more than you need to. Over time, life insurance premiums can change, and new policies may offer better coverage at lower rates. Take the time to shop around, compare quotes, and see if you can secure a better deal. It’s always a good idea to reassess your policy regularly to ensure you’re getting the best value.