Life Insurance Milestones: 6 Key Times to Reevaluate Your Coverage

In this episode of PennyWise, host Nat Cardona delves into the critical topic of life insurance with Nerdwallet financial expert, Elizabeth Ayoola. They discuss six key milestones that signal it's time to reevaluate your life insurance needs, providing essential insights for anyone looking to safeguard their family's financial future.

The episode begins with a fundamental overview of life insurance, explaining its importance for anyone with financial dependents. Elizabeth shares a poignant example of how the lack of life insurance can leave families in financial distress, emphasizing the need for adequate coverage.

Next, they explore the significant life events that should prompt a review of your life insurance policy. These include getting married, having children, buying a house, and taking on significant debts like student loans. Each scenario underscores the necessity of ensuring your loved ones are financially protected in case of an untimely death.

The conversation also covers the importance of reassessing your life insurance when starting a new job. Many people overlook the fact that group life insurance from a previous employer may not transfer to a new one. Elizabeth advises listeners to check their new employer's life insurance offerings and consider supplemental personal policies if needed.

Affordability is another key topic. Elizabeth dispels the myth that life insurance is prohibitively expensive by sharing her personal experience with term insurance, which can be surprisingly affordable. She suggests reallocating funds from less essential expenses to ensure you can afford this crucial coverage.

For business owners, life insurance is equally important. Elizabeth explains how having a policy can provide financial stability for business partners and employees in the event of the owner's death, ensuring the business can continue operating smoothly.

The episode also touches on the importance of life insurance for primary caregivers of aging relatives. With many long-term care costs not covered by Medicare, having a life insurance policy can prevent financial hardship for those left behind.

Elizabeth emphasizes the importance of using tools like life insurance calculators to determine the appropriate amount of coverage needed. She highlights Nerdwallet's own calculator as a simple and effective resource for getting an accurate estimate.

Tune in to this episode of PennyWise for expert advice on when and why to reevaluate your life insurance policy. Implement these strategies to ensure your loved ones are financially secure, no matter what life throws your way.

PennyWise is a show about money, personal finance, investing and travel. Hosted by Nat Cardona, the program features a variety of financial experts who can help save you money.