If you have a family to support, you need to have enough life insurance coverage in place to protect your loved ones in the event of your death. Most financial experts recommend that workers carry enough life insurance to replace their income – this generally equates to a death benefit of at least 10 times your annual salary.

Purchasing at least this much life insurance coverage is important, but you cannot simply take out a term life policy and then forget about it. As your career advances and your salary increases, you need to keep on top of things and adjust your life insurance coverage accordingly.

If you took out a term life policy when you were making $30,000 a year, you should have purchased a death benefit of at least $300,000 to adequately protect your loved ones. If you have been getting regular raises since then, you might be making significantly more than that original $30,000, and that could mean you need to increase your insurance coverage.

If you are now making $40,000 a year and your family is spending based on that amount, the original death benefit you purchased may no longer be enough. That is why it is a good idea to review your coverage from time to time and make sure you and your family are still protected.

One of the smartest things you can do is review your life insurance coverage each time you get a raise at work. If your raise is a small one, you may not need to adjust your life insurance coverage, but if you will be making thousands of dollars more a year, it is a good idea to adjust your life insurance coverage accordingly.

The good news is that increasing the amount of life insurance coverage you carry may not be as expensive as you think. Term life insurance can be quite affordable, especially if you are young and healthy. Simply taking a small portion of your raise and applying it toward extra coverage can help to keep your family protected.

If your spouse works as well, it is a good idea to go through the same exercise each time a pay raise is in the offing. If it takes two incomes to run your household and pay your bills, you and your spouse both need to have sufficient life insurance coverage in place. It is a good idea for both of you to carry life insurance with a death benefit equal to at least 10 times your annual salary. It is just as important to review and adjust that death benefit each time your salary increases. Failing to do so could leave your loved ones unprotected when they need the money most.

An alternative strategy is to review your life insurance coverage on an annual basis, rather than when you receive your yearly salary increase. Reviewing your coverage once a year is simpler, but it is important not to let the date slip away. You can prepare ahead of time by taking a small part of your raise and setting it aside in a savings account. That way you will have the money you need to increase your coverage when the annual review period rolls around.