Changing a Life Insurance Plan with a Promotion

You've been promoted - congratulations! But what does this promotion mean for your life insurance policy? You will most likely be making a little more than before and thus should you change your life insurance to reflect this? This is an important question to ask yourself and the answer depends on a number of circumstances.

Individual Life Insurance Policy Changes

Term life insurance is for a certain period in your life. If you have chosen a basic insurance policy to cover your mortgage or other debts and that is about it, then you may not need to change this unless you are also planning on changing your mortgage repayments or other debt repayments. However, it might not be a bad idea to ring up your insurance provider and let them know your salary will be changing or if you have retirement age insurance questions just in case. It will only take a quick phone call and can save you any hassles down the road if you do need to make a claim.

If you do have an individual term insurance policy but have included add ons such as income protection or unemployment coverage, then you will need to change your policy to reflect this promotion. As your salary will change then so will your payments if you do ever need to make a claim. This type of coverage is used in the event that you are unable to work due to an accident, injury or illness and can provide your family with a similar income to what you were making before you were injured. You want to be sure that the policy reflects the most recent salary that you are on to ensure the highest payments.

Changing a Group Insurance Policy

If you have group life insurance then you will need to change your life insurance policy. After all, you are in a different role in the company and you may need additional coverage in some instances. In most instances the representative from your company will discuss these changes with you at some time or another. However, if this is not the case then you will need to contact your group life insurance provider, quoting both your policy number and your group number, and make the changes yourself. It should only take a few minutes to do so.

Keep in mind that updating your life insurance after any big change is also important. This includes if you have moved, if you gotten married or divorced or if you have had a child. Updating your policy to reflect these changes will not take that much time. As a general rule of thumb, you should review your life insurance policy at least once a year, even if nothing has changed in your circumstances. Furthermore, it is also a good idea to review your policy on an annual basis and check to see what quotes insurance companies are now offering. You may find that you can get a cheaper policy if the rates are down from the previous year.

Changing a life insurance plan with a promotion is relatively easy. You may wish to stick to your current provider which means all you need to do is make a phone call to a representative to discuss your options. Or, you may wish to do another simple search of all competitors to see what is out there now that your circumstances have changed. Either way, you can expect the process to only take a few minutes and will ensure that you are insured adequately with your new role in the office and in life.

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