by Donise Paul

When to Review or Update Your Insurance

Insurance is a crucial aspect of financial planning, providing protection against unexpected events. However, it’s not a set-it-and-forget-it arrangement. Here are key times to review or update your insurance policies:

1. Major Life Changes

Any significant life event, such as marriage, divorce, the birth of a child, or retirement, can alter your insurance needs. Updating your coverage during these times ensures you have the right protection for your new circumstances.

2. Changes in Property Value

If you’ve bought a new home, renovated, or purchased valuable assets (like a car or jewelry), it’s essential to revisit your insurance. Ensure your coverage reflects the current value to protect your investment adequately.

3. Lifestyle Changes

Changes in your lifestyle, such as starting a home-based business or moving to a different state, can impact your insurance requirements. Review your policies to ensure they align with your current activities and locations.

4. Annual Reviews

It’s advisable to conduct an annual review of your insurance policies. This allows you to assess if you’re still getting the best coverage and rates. Market conditions, as well as personal circumstances, can change significantly in a year.

5. Discounts and New Products

Insurance companies frequently update their products and offer new discounts. If you find yourself eligible for discounts or new policies that better suit your needs, it might be time to update your insurance.

6. After Major Claims

If you’ve recently made a significant claim, review your policy. Understand how the claim affects your coverage limits, premiums, or even your eligibility for future coverage.

Conclusion

Being proactive about your insurance ensures you maintain adequate coverage and can save you money in the long run. Regular assessments will help align your insurance with your life changes and financial goals.