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Insurance 101

Got a raise? Consider adjusting your life insurance policy

Insurance 101

Got a raise? Consider adjusting your life insurance policy

New take-home pay should come with some smart financial planning.

Getting a raise can be an incredible feeling. But a fatter paycheck should mean smarter financial planning. So before you get those once-too-expensive plane tickets, consider putting your new take home cash to good financial use. 

And having a life insurance policy that’s flexible and adjustable is a great way to put your raise to work for your future. Don’t believe us? Read on below to find out why.

  1. Why should I get an adjustable life insurance policy?
  2. But why should I use my raise for a flexible policy?
  3. Conclusion

Why should I get an adjustable life insurance policy?

The COVID-19 pandemic has shown the need for flexible life insurance. It continues to be devastating for communities, both in terms of health and finances. Whether it’s the lingering effects of “long COVID” or the “mass resignation” facing a number of industries, the pandemic will continue to be felt well after it’s “finished.” 

All in all, life is full of unexpected events and realities, which is why life insurance exists. It’s all about preparing for the unexpected. Should something happen to you or to a loved one, there can be comfort in knowing that help is possible. And help that adjusts to you and your needs is even better. 

For example, Wyshbox provides personalized term life insurance that can increase and decrease depending on your situation. If you need more coverage to tackle a mortgage or to meet greater needs for your kids’ education, Wyshbox can help you keep track of your intended goals.  

But why should I use my raise for a flexible policy?

Listen, we get it. Times are tough right now. It’s been said, “more money, more problems.” And it really can be. Having more take-home pay can lead to a number of problems if you’re not careful. Issues such as lifestyle creep, for example.

Pattern of lifestyle creep
This graph is a representation for example purposes on how an increase in salary results in lifestyle inflation.

To prevent this, experts cite putting away 75% of your raise and living solely within your needs. Some needs include putting money away for a rainy day fund or paying off debts. And only half of Americans have more emergency savings than they have credit card debt. This is in line with other topics we’ve discussed, such as the five financial mistakes millennials make

Using your raise to secure a life insurance policy that responds to your needs is a smart use of your money. It allows you the chance to have some peace of mind, either for yourself or your family. And if you can’t secure all that you want right now, the policy can be adjustable. So you can come back when you’ve gotten that next raise and make the changes you want. 

Conclusion

A raise can be a reflection of your increasing value within an organization. Why not take that reflection and use it to secure a little peace of mind? If it’s not a right fit, you can change it later. As we grow, we get new experiences, new knowledge and, if we’re lucky, more money. Getting a life insurance policy that grows with you is the way to go since one-size-fits-all just doesn’t work anymore. So you should get an insurer that will work for you.

The opinions we expressed in this post are for general informational purposes only and are not intended to provide specific advice or recommendations.
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