3 Financial Resolutions That Are Easy to Keep

Many of us make New Year’s resolutions. We may not write them down, but they certainly float around in our head. Usually at the top of the list is getting our financial house in order. But, truthfully, it’s not always easy, so that’s why we’d like to offer three resolutions that are.

An important step in making sure those you care about are taken care of financially is having adequate life insurance. Most of us don’t have enough savings to ensure that if something happened to us, our family would be OK financially—and that goes for breadwinners and stay-at-home parents. So let’s get started.

1. Review your life insurance. This is simple if you have none; move on to resolution #2. If you do have coverage, make sure you know what type it is: term or permanent. If it’s term life insurance, double check to ensure it will be there if you need it. For example, if you’ve just had a new baby, and have 10 years left on a 20-year term policy, that coverage wouldn’t be in place to help your child through high school and college.
   
   Then check to see if your policy is one you own individually (this is usually purchased through an agent or website) or if it’s through work. If you only have coverage through the workplace, know that it can disappear if you lose or change your job, potentially leaving you with nothing. Getting an individual policy means you won’t have this worry, plus you can customize the amount you need and the length of the coverage..

Top tip: An insurance agent will do a life insurance review for you at no cost.

2. Make sure you have the right amount of life insurance. There are a number of factors that go into calculating how much life insurance you may need. But this doesn’t have to be hard. Try using an online Life Insurance Needs Calculator, which within a few minutes can give you a good working idea of what you might need. Again, our lives change from year to year, so the coverage you had a year ago may not be right anymore. Most times we’ll need to add to coverage: when you get married, become a parent or buy a house, for example. Other times, you may be able to scale back: when you retire or the kids move out of the house. (But before you get rid of or let coverage expire, be sure to read this post!)

Top tip: Using an online Life Insurance Needs Calculator is a great way to educate yourself about how much life insurance you may need, but talking with an insurance agent can help ensure you don’t miss any additional needs.

3. Get the coverage you need. There are a number of ways you can get life insurance coverage, so use the one that works best for you. Many people feel most comfortable talking with an insurance agent, which can be done in person or over the phone. You can also request information by mail, and start the process that way. And an increasingly popular way to get life insurance is online, with the option of applying for coverage from your computer or mobile device. These types of express life insurance are a great way to get these New Year’s resolutions in place quickly.

Top tip: Remember, some life insurance is better than none. So if money is tight, buy what you can afford, and add to that when you are financially able.

Life insurance underwritten by AAA Life Insurance Company, Livonia, MI. AAA Life (CA Certificate of Authority #07861) is licensed in all states except NY. ExpressTerm Policy Form Series ICC12-1301/TL-1301 (In OR: ICC12-1301)