Should You Buy More Life Insurance in 2024?

Buying life insurance isn't something most people like to think about, but it's something almost everyone needs to do. Anyone who has people depending on them for financial support or the services they provide should have a policy in place to protect those they love in case of an untimely death.

Once life insurance is purchased, it's tempting to try to never think about the issue again, aside from paying premiums out of a bank account. But, it may be a smart move in some situations to buy more coverage. Here are a few circumstances where it may make sense to buy more coverage in 2024.

When you have new financial obligations

Buying more life insurance could be especially important after committing to a new financial obligation that would continue to exist after death.

Say, for example, someone with life insurance bought a house with their stay-at-home spouse and they took on a $400,000 mortgage. It could be important in this situation to increase the death benefit by enough to pay off the mortgage. Otherwise, the surviving spouse might not be able to keep the family home.

The point of life insurance is to help surviving loved ones avoid a decline in their standard of living. Not being able to cover what were once shared financial obligations can be stressful and lead to a major lifestyle downgrade. So, when committing to payments that will have to be made over the long term, consider buying added life insurance so the money will be there to make those payments no matter what happens.

When you have major lifestyle changes

Aside from acquiring new debt, other lifestyle changes could happen in 2024 that make buying more insurance coverage important Specifically, any life change that leaves more people depending on the policyholder for income or services should lead to more coverage. The same is true for any lifestyle change that increases the cost of providing for those left behind.

Say, for example, that a person gets married. They now have a spouse and they may commit to accomplishing some financial goals together. This major lifestyle change means that now a death could lead to the surviving spouse experiencing a decline in quality of life because they can no longer afford the lifestyle they lived when two incomes were coming in. Life insurance could help that spouse maintain their standard of living established during the marriage.

Other big lifestyle changes that could necessitate more life insurance coverage could include:

• The birth of a new child or grandchild
• A loved one becoming disabled and needing lifelong care
• Aging parents requiring more assistance

Basically, if a change in circumstance results in more dependence on the policyholder in any way -- for either money or services -- then buying more life insurance coverage should go on the to-do list.

For policyholders who decide to get more coverage, they can contact their current insurer to see about raising the amount of their death benefit or can shop for a new policy from a different carrier.

No matter what, they'll need to meet the insurer's requirements for getting additional protection, but it can be well worth the effort to do that to ensure no one left behind is left in bad shape due to a lack of financial support.