When you change your career, you do not just change your income, your commute to work, and possibly even where you live – rather, these should not be the only changes you make when you make career changes. When you change your career, you may also need to change your life insurance policy.
The three most common career changes that necessitate changes in your life insurance policy are changing from what is considered a dangerous career to what is considered a safe career; changing from what is considered a safe career to what is considered a dangerous career; and leaving a career with a “boss” to begin a career as a self-employed individual.
Leaving the Dangerous Career for the Safe Career
When you have a dangerous career, such as working as a pilot or an instructor of a risky “hobby,” such as mountain climbing or scuba diving, you undoubtedly need more life insurance. If you leave this kind of career for something safer, you may want to reexamine the level of life insurance you have. This could also help you save money.
Leaving the Safe Career for the Dangerous Career
On the other hand, when you leave your safe desk career to become a pilot, for example, you sre going to need much more life insurance than you had while you worked your safe career. Otherwise, you may find yourself, and your family, seriously under compensated in the event of an emergency or your death.
Beginning a Career as a Self-employed Individual
If you leave a company that offered life insurance to work for yourself, you may lose your previous life insurance policy. If you find yourself in this situation, it is important to search for life insurance elsewhere, or risk finding yourself, and your family, under compensated in the event of an emergency or your death, as is the case when people with safer careers switch to more dangerous careers.