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Express Financial & Insurance Services

3222 Santa Monica Blvd
Santa Monica, CA 90404

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The Benefits of Decreasing Term Life Insurance

As you age, you may be thinking about decreasing your term life insurance policy amount. If you are thinking about doing this, you may be wondering what, if any, benefits there are. At Express Financial & Insurance Services, we want to educate our clients on the importance of increasing life insurance when needed and decreasing life insurance as needed. Here are a few benefits of decreasing your term life insurance policy. 

Lowered Cost

One of the biggest benefits to decreasing your term life insurance policy is the lowered cost. As a general rule of thumb, the lower your policy amount, the lower your premium payments will be. If you are looking to decrease the cost of your life insurance policy, or no longer need to carry as much insurance as you have in the past, lowering the policy limits on your life insurance policy may be a great way to go about doing so. 

Carrying What You Need

Most people need less life insurance as they age. Their children may leave the nest and their home may be paid off. When you have children and/or when you have a home that is not paid off, you should be carrying enough life insurance to pay down your debt and support your family. But when these things are no longer in play, you can decrease your policy amount and only carry what you need. This helps to ensure that you are not over insuring yourself. 

If you are in the market for a new life insurance policy, or are looking to increase or decrease your policy amount, contact Express Financial & Insurance Services. We can help you determine how much life insurance you should have based on your current life expectancy and financial situation. 

What Happens to Life Insurance in the Event of Divorce

Once a couple decides to divorce, there are substantial decisions to be made about asset and debt distribution. One example of an asset is life insurance, a policy that is often used by spouses to protect the other in the event of one’s untimely death and the financial loss it would incur. Costs that need to be met might include paying the rent or mortgage, food expenses, and raising any children. This matter of adjusting life insurance is often overlooked, as the couple is preoccupied with more pressing matters such as custody of any children and adjusting to single life, possibly in a new home, as well.

Divorcing spouses are recommended to keep their life insurance policies active to protect the financial interests of both ex-spouses, as well as any dependent children. However, most couples without children will remove their ex-spouse from the life insurance policy as they don’t want the other to profit in the event of their death.

Beneficiaries can be changed, however. It’s easy to change your beneficiary by calling your life insurance agent and making sure your policy is revocable so the beneficiary can be re-designated.  

Getting Divorced and Changing Your Life Insurance Policy

If you are in the midst of a divorce in Santa Monica, California, contact Express Financial & Insurance Services to learn more about how the asset of life insurance can be fairly changed for you and your ex-spouse, whether or not you have children.

We can help you with all your insurance needs, from auto insurance to commercial insurance. Contact us today at (310) 453-5736 to get a quote.