A Raise or New Role? Revisit Your Life Insurance Needs

Start with the household’s current obligations

A raise or lasting change in work may alter what your household relies on, but a salary multiple alone does not calculate the right life insurance amount. List essential monthly expenses, debts, caregiving needs, education goals, existing savings, and the years those obligations could continue. Then consider which income would need replacing if an insured person died. This worksheet is a starting point for a discussion, not a recommendation to buy a fixed amount.

Check employer benefits separately

A new role may change employer-provided life coverage, eligibility, or the amount available without additional underwriting. Ask for the current benefit summary and confirm when changes take effect. Group coverage can have portability or conversion rules if employment ends; individually owned coverage has different terms. Our group life after a job change guide lists questions to ask before a transition.

Compare existing policies with the gap

Gather the declarations or current statements for individually owned and workplace policies. Note each death benefit, insured person, owner, beneficiary, premium, term end date, and any loan that could reduce a benefit. Subtract only coverage you have verified from the household need you calculated. Ask Jennifer Dammeier Agency to explain available options, costs, underwriting, and when any proposed coverage would actually become effective. Do not cancel an in-force policy based only on an application or illustration.

Record a review date and decision

Save the household worksheet and updated benefit summaries, and revisit them when income, dependents, debts, or work benefits change again. A higher income does not always require more insurance if other resources or obligations changed too. Browse the Life Insurance archive for related questions. Discuss tax, estate, or legal issues with qualified advisors when they matter to your decision.

The Jennifer Dammeier Agency serves Bargersville and nearby Johnson County communities. Contact Jennifer Dammeier American Family Insurance with your current policy and details of your situation to discuss available options.

This article provides general educational information, not individualized insurance, legal, or tax advice. Coverage, availability, limits, exclusions, and claims depend on the policy and insurer. Review your documents with a licensed agent and consult other qualified advisors as needed.