Does a Raise Spark More Life Insurance Coverage?
Congratulations, you’ve got a big raise! Whether it was unexpected or you’ve been working to achieve it for months, you may be cheering and celebrating. Sooner rather than later, you will want to sit down and think about what you’ll do with all that extra income. It may be far down your list, but consider life insurance on Long Island, NY and your coverage.
If I get a raise, should I get more life insurance coverage?
Getting a raise means that your family will likely become accustomed to a higher standard of living. If this is the case and you were to die, they’ll need more coverage to help them maintain the same lifestyle. Although the hope is that you’ll go on to lead a healthy and happy long life, it’s important to be prepared for the worst-case scenarios. Leaving your family in the lurch after your death puts unnecessary financial pressure on them.
How much should I increase my life insurance coverage?
How much coverage you need will depend on a few factors:
- Your total income – you may have gotten a raise but that doesn’t mean you’re a millionaire. How much of a raise did you get?
- Your location – the cost of living will vary by location.
- How much your family needs to live on – It may be tedious, but it’s worth knowing the figure that your family need to live on.
Once you have all this information at hand, you can arrive at a coverage amount that seems reasonable.
How to increase your life insurance
Generally, there are two options – increase the current policy you have or buy a new one. Not all policies can be increased, so check with your carrier first. At this stage, it’s important to consult with a professional agent who can help you find the right policy at the right price.
Ready to get started on your life insurance policy? Talk to the professionals at Premier Risk Insurance to find out how you can acquire affordable coverage. We serve Long Island and surrounding cities in New York, and we look forward to hearing from you today.