I Didn’t Increase My Life Insurance Although My Income Doubled. Here’s Why

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It’s a way that makes sense for my family.

Key points

  • It is important to have adequate life insurance.
  • While some people like to increase their income when they earn money, I don’t.

My husband and I decided to get life insurance after having a baby. Before this, it wasn’t even on our radar, but we decided to meet with a financial advisor who did a great (and important) job of convincing us that setting up a plan was the right thing to do.

When we started researching our options for coverage, we were confused between life insurance and whole life. We liked the idea of ​​finding a whole life policy that would bring value for money. But we also didn’t want to spend a lot of money on life insurance, and it was clear that a long-term life insurance policy would be much cheaper.

In the end, we decided to go with long term insurance for both of us. But we bought more money for my husband than we bought for me, because he had more money.

Right now, my income has doubled since we started our life insurance policy. How so? Now that my children are growing up, I have easy and reliable childcare, which allows me to work many hours a week.

Also, since my children are now self-reliant, I don’t have to spend time every morning brushing their teeth and dressing them, or have time to bathe them in the evening. In fact, these are things they can do themselves, and it frees up a lot of time for me to work.

And finally, I am happy to say that over the years, I have been successful in my career. I have also gained so much knowledge on the various topics I write about that even though I may have been forced to spend time researching other subjects years ago, these days, I don’t have to do all the things I do.

But even though I’m happy that my income has increased significantly over the years, I’m not in a rush to increase my life insurance. That is why.

When you are already studying you are comfortable with

My husband and I were planning to have children, and we knew we needed to have enough money to keep one of us out of work for a while. So, when we made big purchases, like our mortgage, we used his own money.

In fact, even though I work these days, we still pay for the most important things from my husband’s money. We try to use my income for things like savings, vacations, entertainment, and home improvement (so we don’t have to save the money).

Because we are trying to keep up with my husband’s salary, we decided to buy him a large amount of life insurance. But since we don’t rely too much on my income, we bought me a small amount of support from the beginning, and we don’t plan to increase our coverage anytime soon.

As far as we can see, what we have now between all our policies represents enough money. And so we don’t see the need for a higher cost of raising my money to account for my income that we don’t really rely on.

Do you need more life insurance?

If the income earner in your home starts to earn more, and you are making lifestyle changes based on this, then it may pay to increase your life insurance. But otherwise, you don’t have to rush to buy more every time your money goes up.

In my case, we didn’t spend much because my income doubled. Sure, we can travel more now that we have that flexibility, but travel isn’t a commitment like paying off a mortgage or a car. And so for now, we plan to leave our life insurance as is.

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