Your Life Insurance: 5 Signs You Might Be Underinsured

Your Life insurance is essential if you have dependents or loved ones whom you wish to provide for after your death. It is important to have life insurance because it will help ensure that your family won’t suffer material losses if you die. How much life insurance do you need? It’s important to get the answer right, as it can change over time. If you have a insurance policy that is not adequate, then.

  1. You May Not Have Enough Coverage If You Rely Solely On Life Insurance Through Your Employer.

    Employer-sponsored plans are usually very limited (e.g., covering only a year or two’s salary) and may not be sufficient to cover your family’s financial needs. The life insurance coverage offered by your employer is often contingent upon your continued employment with that company. If you quit for any reason, you lose the coverage. You can also choose to buy an individual life insurance policy that provides access to different types of policies, including permanent insurance that offers living benefits.

  1. Your Income Has Increased.

A raise is always welcome, but you could be underinsured if your income has increased significantly since you bought the policy. Higher incomes are often accompanied by lifestyle changes. Your loved ones may not want to learn how to cope with less if you die unexpectedly.

  1.  Your Stay-At-Home Spouse Does Not Have Life Insurance

If you have a stay-at-home spouse who does not have life insurance, it’s worth considering getting them one. Even if your spouse doesn’t earn an income, you should consider getting them a policy. View the Virgen Family’s Real Life Story and see how important life insurance is for a family that insured Teresa, a mom who stays at home. They are certain they would have lost the house if not for insurance.

Your Life Insurance

  1. You Have a Child.

Every parent knows that raising a child is expensive. In fact, by 2023, it will cost, on average, more than $21,000 per child each year. This doesn’t even include college!

If you are a new parent or have added a child to your family, now is a great time to review your coverage. Make sure you have enough insurance to cover your dependents long-term, including food, housing, and education until they reach adulthood. Even one child, given the high costs of childcare and the financial precarity of a single parent who is underinsured, can significantly increase your need for life insurance.

  1. You Purchased a New House.

The mortgage payment is a pressing need for every family, but it’s even more so for newly widowed spouses. You may need to increase your coverage if you have purchased a home since your first insurance policy. This will help your family pay off the debt. Moving is never fun, especially when you are dealing with a tragedy.

It can be overwhelming to decide how much coverage you require as your financial circumstances change over time. However, you are in control of ensuring you have enough protection. The Life Insurance Needs Calculator from Life Happens is a good place to start when estimating the amount of coverage you require. One half-hour of work can lead to financial stability for years in the future.


In conclusion, life insurance is a crucial aspect of financial planning, providing a safety net for your loved ones in the event of your passing. To ensure that your coverage remains adequate, it’s essential to periodically reassess your policy, particularly when major life changes occur. Whether it’s a career advancement, the addition of a family member, or a significant purchase like a new home, these milestones can impact your financial responsibilities. By recognizing the signs of being underinsured and taking proactive steps to adjust your coverage, you empower yourself to safeguard your family’s financial well-being. Remember, staying informed and using tools like the Your Life Insurance Needs Calculator can guide you in determining the right amount of coverage, offering peace of mind and financial stability for the years ahead. Life insurance is not only about protecting against the unexpected; it’s an investment in the future security and prosperity of those you care about most.

Contact Us Today!

Don’t wait – every passing moment is an opportunity to safeguard your insurance. Click the link below to explore our E-policy Life Insurance plans and take the first step towards building a resilient foundation for your dreams. To learn more about life insurance visit our website or contact us today!

Scroll to Top