How Often Should I Review My Life Insurance?
Conventional wisdom, as well as guidance from the III (International Insurance Institute), dictates that you conduct an annual review of all your insurance policies, if only a cursory look to ensure nothing has occurred to require any changes. Everyone likes saving money and, if for no other reason, it’s probably worth taking a few minutes to find out if more competitive coverage has become available in the past year to better fill your particular insurance needs. Performing due diligence can’t hurt, and taking the time to go over your insurance policy specifics on an annual basis will refresh your knowledge of just what your coverage includes (and doesn’t include).
General Insurance Reviews
For any kind of insurance policies you currently have, significant changes in the status quo should be an immediate trigger to contact your insurance agent to help determine the impact on your current coverage. Your homeowner’s insurance, for example, may need to be upgraded to accommodate a dollar value change in your home or property. This could be the result of a significant remodel to the dwelling or a decided increase in the value of the personal possessions inside the home. Adding a swimming pool in the backyard should definitely trigger an insurance review, both from a value standpoint as well as the increased liability implications.
Life Insurance Reviews
Any major life changes you undergo will indicate the need to review your life insurance coverage and, in many cases, to make some alterations. Some of the more typical include:
- Getting married or divorced
- Having a child (or a grandchild)
- Buying a new home or refinancing your existing home
- Receiving a significant inheritance
- Becoming financially responsible for an elderly parent, including support needed for long-term care
- Changes in the health of you or your spouse that require a reevaluation of family finances
Speak to an Expert
Because life insurance and life insurance policies can be somewhat confusing, it’s a good idea to consult your trusted insurance agent whenever any of the above events occur in your life. Significant life changes are often accompanied by changes in your insurance needs.
Young families who had opted for temporary, term life coverage because of its affordability when they were younger may decide as they become older that the benefits of permanent, whole-life coverage may be a good idea to investigate. Talk to a trusted expert who can best answer your questions.