How Often Should You Review Your Insurance Coverage

Insurance policies are not something we buy once and discard until it’s required. It is imperative to periodically review and evaluate insurance policies so that you never endanger your family and keep them safe from any unpredictable crisis.

Here are critical instances when you should review your insurance policies at best.

When there is a Change in Your Relationships

Marriage, divorce, the birth of a child, or the death of a close one are valid examples of change in a relationship. Mainly whenever there is an addition or subtraction of a family member, most insurance plans need a review to make sure they accommodate every new member.

As a rule of thumb, whenever you welcome a new member to your household, schedule a review session for your current insurance policies. You might want to include this new member into your policy as a beneficiary, or take into account their living expenses to ensure your sum assured will cover for this.

When Important Career Decisions Are Made

Career changes lead to changes in financial status. Whether it is an extraneous bonus, promotion, payout, or creation of business, new financial decisions are made, affecting the amount of income or revenue you regularly deal with. Having the correct scale of insurance protects you from a wide range of money fiascos. There is no such thing as a 100% safe investment, but insurance policies can outline probable risks and mandate coverage in precarious situations that call for damages.

When You Take Up Credit Liability

Committing to financial loans invite risks and responsibilities. Whether it is a car, education, credit card, or personal loan, you should ensure that your insurance policies cover these expenses. Leaving a loved one with an accrual of debt in your absence can sometimes become insurmountable for them to pay off. Your life planner and insurance review system should evaluate responsibilities and create a long term plan that encompasses the payment of these liabilities.

Whenever a Life-Altering Event strikes you

We all go through thought-provoking and physically troubling situations in life. Sometimes it becomes necessary to mandate a particular type of insurance while we indulge in our risk associated activities. Averting danger isn’t always as easy as it seems. There are risk-prone professions and risk-related businesses. Having the right insurance coverage to manage a particular scenario at a particular time is highly recommended. You should always keep a check on the type of insurances you have and their overall duration period. Some insurances can be contingent or activated on the probable occurrence of an event. (Theft insurance, export insurance, travel insurance, etc.)

In a majority of cases, your current coverage may still be adequate. But generally, it’s an excellent idea to comprehensively review all of your insurance requirements at least once in a year. If you have a significant lifestyle change, contact your company representative or insurance agent, as the difference in your life may impact your insurance requirements and premiums. Insurance is a tool to protect you and your family from unforeseeable financial exploitation. Be safe and insured!