It is important to review your life insurance needs periodically to match your coverage against changes in your lifestyle. There are a number of significant events during a lifetime which should prompt you to review your life insurance needs:

• Marriage
• Birth of a child or grandchild
• Change in family income
• Home purchase
• Nearing the maximum age for term insurance
• Increasing term premiums due to age

One way that you can arrive at the right answer is by asking yourself the right questions, What do my loved ones need to maintain their financial stability and if I'm not there to provide for them . . . how much are they likely to have? There are several factors that you should consider before you can answer that question. They are: income replacement for children and surviving spouse, final expense, mortgage debt, estate tax consideration, and a possible means of accumulating a cash fund for the future. The right amount of insurance will also depend on how much insurance you can afford at this time and as your income increases. Use our handy worksheet.

Term: Term insurance is designed to provide financial protection for a limited period of time, and initially it is the most affordable type of insurance. Term insurance provides death benefits only. Nothing is paid if the insured is living when the term ends, and as you grow older, your premiums may increase.

Renewability and convertibility privileges are two options that may be available in a term policy. Renewability allows you to extend coverage for another term period without medical requalification until age 70 or 80. Convertibility allows you to convert your term policy to a whole life permanent policy, also without medical requalification.

Whole life is permanent insurance featuring premiums that never increase and coverage that never decreases and that lasts the rest of your life. These policies also have a cash value that may be borrowed against to pay for education, supplement retirement income, or pay off any other debt. Cash value also builds tax deferred. Dividends (which are not guaranteed) can be used to reduce premiums, purchase additional insurance or be taken in cash.