Increasing number of dependents can lead to needing more life insurance
May 5, 2010, 04:00 pm
Changes in life circumstances are one reason why consumers should consider looking over their life insurance coverage, or consider getting a policy in the first place.
According to the New York Times Bucks blog, having a second child or taking care of older generations may be reasons why people will want to expand their coverage. If the covered person were to die, the addition coverage will help make sure dependents are taken care of financially.
However, the blog also said that an expansion of coverage could mean a health exam. If that uncovers any problems, it could lead to higher costs.
"Simply growing older may lead to a cost increase, too, even absent any red flags in the medical tests," the Times said.
Experts also note consumers should consider the type of coverage they want to buy. For many, term life insurance will probably be enough tomake sure children have funds for college or that a home loan continues to be paid. Meanwhile, whole life insurance can help pay for estate taxes.
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