Life can change in unexpected ways. The birth of a child, the death of a loved one, the loss of a job, a significant purchase, or a move to a new place can affect your financial situation and your insurance needs.
That’s why it’s essential to review your insurance policies regularly and ensure they match your current circumstances.
Benefits of Reviewing Your Insurance Policies
Reviewing your insurance policies can help you:
- Save money: You can lower your premiums or get discounts by adjusting your coverage levels, deductibles, or payment options. You may also find out that you have duplicate or unnecessary coverage that you can cancel or reduce.
- Avoid gaps in coverage: You may need to add or increase your coverage to protect yourself and your family from new or increased risks. For example, if you buy a new car, you may need to update your auto insurance policy to cover it. Add them to your health and life insurance policies if you have a baby.
- Adjust to life changes: You may need to change your beneficiaries, policy owners, or contact information if your personal or financial situation changes. For example, if you get married or divorced, you should update your life insurance policy to reflect your new marital status and spouse.
Types of Insurance Policies You Should Review
You should review all types of insurance policies that you have, such as:
- Health insurance: This covers your medical expenses and preventive care. Reviewing your health insurance policy annually or when a major life event happens is essential. A major life event is a significant change in circumstances that lets you sign up for or modify your health insurance plan at any time of the year.
- At least once every year, or when a significant life change occurs, you should review your health insurance policy. A life change is a substantial shift in your situation that gives you the option to join or alter your health insurance plan anytime during the year.
- Some examples of qualifying life events are getting married or divorced, having a baby or adopting a child, losing your job or changing your income, moving to a new place, or becoming a U.S. citizen.
- Life insurance: This pays a lump sum to your beneficiaries if you die. You should review your life insurance policy whenever you experience a significant change in your family, income, or assets. Your life insurance needs may change due to events such as marriage or divorce, parenthood or grandparenthood, home purchase or mortgage payoff, business launch or sale, retirement or career switch, or inheritance receipt.
- Your life insurance needs may change depending on significant events, such as marriage or divorce, parenthood or grandparenthood, home purchase or mortgage payoff, business launch or sale, retirement or career switch, or inheritance receipt.
- Auto insurance: This covers your liability and damages in case of an accident involving your vehicle. You should review your auto insurance policy at least once every six months or whenever you change your vehicle or driving habits. Some examples of changes that affect your auto insurance needs are buying or selling a car, adding or removing drivers from your policy, moving to a new place, changing your mileage or commute, getting tickets or accidents, or improving your credit score.
- Home insurance covers your property and liability in case of damage or loss involving your home. You should review your home insurance policy at least once a year or whenever you change your home or its contents. Some changes that affect your home insurance needs are renovating or remodelling your home, adding security systems or fire alarms, buying expensive items or collections, renting out part of your home, filing claims for damages, or switching mortgage lenders.
How to Conduct a Review
To conduct a review of your insurance policies, you should:
- Gather all your current policies and statements and review them carefully. Look for any errors, discrepancies, or outdated information. Check the coverage amounts, deductibles, premiums, payment options, discounts, exclusions, and limitations.
- Compare your current policies with your current needs and goals. Ask yourself if you have enough coverage to protect yourself and your family from risks. Consider whether you need to add, increase, decrease, or cancel coverage. Think about how much you can afford to pay for premiums and deductibles.
- Shop around for better rates or coverage options. Use online tools such as calculators and comparison websites to get insurer quotes. Contact an insurance agent or broker for advice and assistance. Negotiate with your current insurer for discounts or adjustments.
- Update your information with your insurer and confirm the changes. Fill out the necessary forms and provide any required documents or proofs. Please review the new policy documents and statements and ensure they accurately reflect the changes.
Conclusion
Reviewing your insurance policies is essential to managing your finances and planning for the future. By updating your policies when life changes, you can save money, avoid gaps in coverage, and adjust to new circumstances. You should review all insurance policies at least once a year or whenever you experience a significant life change.
Please let me know if you need more assistance with your insurance needs. 😊
Michael J Eberhardt – Lifetime Solutions, LLC – 91 W Baylor Lane; Gilbert, AZ 85233 – 480-726-8805
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