When should you adjust the amount and beneficiary of your life insurance policy? If you don’t pay attention, you may end up losing both your money and your life!

Life insurance is a layer of protection for unexpected events. Without life insurance, if the main breadwinner of the family dies suddenly, the family may have to worry about daily expenses because there is no income in the joint account.

When buying life insurance, make sure the coverage is sufficient to fully take care of the family members left behind. Also, once you have new responsibilities, such as a child or a mortgage, you have to consider increasing the coverage. However, this is not the most important thing. There is something more important that must be done in time.

Change life insurance beneficiary immediately

If there are any changes in your life, you must immediately change the beneficiary of your life insurance. Life insurance is generally paid according to the list of beneficiaries.

It doesn’t matter what is written in the will, or what other wishes the deceased may have. Generally speaking, the beneficiaries listed are the ones who will get the money. If you don’t change it in time, it may cause big trouble.

For example, a person who has life insurance originally wants to divide the compensation among his children (for example, Sam, Tom and Joe). But if Kim is later added as a child, and then this person dies, Kim will not get the money if the policy has not been changed before. She can only hope that her brothers are willing to give her some, otherwise she will have no share.

If you don’t change the beneficiary in time, there may be other problems, such as the beneficiary’s death, or breaking up with the beneficiary, or the relationship breaks down. In some places, the ex-spouse’s beneficiary qualification is automatically cancelled after divorce, but this is not the case everywhere, so if you don’t change it, the ex-spouse may end up taking the insurance money.

Change it immediately when appropriate

Once you decide to change the beneficiary, you have to change it immediately. No one knows when something unexpected will happen. If the insurance money does not fall into the hands of the right person at that time, it will be a tragedy within a tragedy.

It’s not always easy to remember, so it’s best to have a reminder, like a note in your wallet that says “Remember to check your life insurance beneficiaries.” That way, whether you have a new baby, break up, get married, adopt a child, or your beneficiary passes away, you’ll always remember to update your beneficiaries and ensure your loved ones are protected.