Categories: Lifestyle

6 Life Events That May Cause You to Reevaluate Life Insurance Coverage

The right life insurance coverage can help protect your family in challenging times, but insurance isn’t a one-and-done deal. Big life changes like getting married, having kids, or even starting a business may mean you need to increase or modify your coverage. Start by using a life insurance calculator to help determine your ideal coverage. Next, check out our guide to important milestones that may necessitate changing your life insurance coverage.

Getting married

After marriage, financial planning and management can become a team effort. The passing of one spouse can create a significant economic burden. Increasing life insurance coverage can allow the surviving spouse to maintain their lifestyle or help pay for funeral expenses. Even if the surviving spouse is employed, the death benefit can help repay any debts or become a college fund for the kids.

Many spouses who work outside the home are typically insured, but it’s equally important for stay-at-home parents to have coverage. Their passing may mean the surviving spouse needs additional help with everyday responsibilities, and the death benefit can help pay for childcare or other necessary services. 

Becoming a parent

As a new parent, you’re probably researching the healthiest foods, the most stimulating activities, and the best schools for your child. But are you increasing your life insurance coverage? The loss of a parent may create financial strain on the surviving parent as they try to navigate childcare, education expenses, and more. A life insurance policy payout can be a much-needed lifeline that helps give families breathing room while they grieve. The funds can also help pay for day-to-day expenses or become part of a child’s college or trust fund. 

Starting a business

Whether you’re a solopreneur or have a business partner, life insurance can be an essential financial tool for business owners. Your untimely passing may leave your family struggling financially if they depend on the income from your business. Increasing your life insurance coverage can help protect them so they can take care of daily expenses and pay off any outstanding business debts left behind. 

If you co-own your business with a partner, you may want to get a life insurance policy to enter a buy-sell agreement. Naming your partner as your beneficiary can help ensure they have the funds to buy your share of the business from your family or estate when the time comes. You may need to increase your coverage as your business grows in value. 

Buying a house

Buying a house can be a proud moment for singles and families alike. But if the worst happens, the mortgage can be a substantial financial burden for your loved ones. It’s a good idea to increase your life insurance coverage when you buy a home. This way, your beneficiaries can use the death benefit payout to help repay your mortgage if the unexpected occurs. 

Increasing your income

Some experts recommend purchasing insurance coverage worth at least 10 times your annual income.1 The right coverage can help your family continue living comfortably without sacrifices or cutbacks. Anytime your income changes, it may be a good idea to take a look at your insurance coverage and see if you need to increase the death benefit. A successful side job or inheritance may also change your family’s standard of living. Periodically review your coverage to make sure it suits your family’s needs.

Estate planning

Increasing your whole life or universal life insurance coverage can be a beneficial part of estate planning. Learn how life insurance can be helpful in your estate plan.

  • Death benefits are paid directly to the beneficiary so that they can access the funds quickly without probate.2 Increasing your coverage enables you to pass on more funds this way.
  • Death benefits are also protected from creditors (depending on your state). Your beneficiaries can receive the payout, bypassing any creditors.3
  • Life insurance can help equalize the division of assets. For example, if one child inherits a profitable business or property, life insurance can ensure that other children are fairly provided for. This is another reason why life insurance for parents is so important.4

Life milestones may not look the same for everyone, but they can impact your finances. Increasing your life insurance coverage during big moments can better help prepare you for the future. Periodically reviewing your insurance coverage can help ensure your family is well-provided for when the time comes. 

Sources:

1 Investopedia – How Much Life Insurance Should You Have? Updated September 23, 2024. https://www.investopedia.com/articles/pf/06/insureneeds.asp. Accessed August 14, 2025.

2 Keyes Law Group – How Does Life Insurance Affect Probate? Updated April 22, 2024. https://keyeslawgroup.com/blog/how-does-life-insurance-affect-probate/. Accessed September 15, 2025.

3 Insurance and Estates – Life Insurance Creditor Protection: State-by-State Guide to Protecting Your Cash Value. Updated August 16, 2025. https://www.insuranceandestates.com/life-insurance-creditor-protection-by-state/. Accessed September 15, 2025.

4 Hammond Law Group – Why Life Insurance Can Make or Break Your Estate Plans. Updated May 6, 2024. https://coloradoestateplan.com/the-importance-of-life-insurance-in-estate-planning/. Accessed September 15, 2025.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent. 

Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York. 

Aflac life plans – A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200M. In Delaware, Policies Q60200CM. Not available in Virginia. 

Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions. 

Aflac WWHQ | 1932 Wynnton Road | Columbus, GA 31999 

Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211 

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Ethan

Ethan is the founder, owner, and CEO of EntrepreneursBreak, a leading online resource for entrepreneurs and small business owners. With over a decade of experience in business and entrepreneurship, Ethan is passionate about helping others achieve their goals and reach their full potential.

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