As your life situations change, so should your insurance. If you’ve switched jobs, gotten married, or purchased a new car, it’s time for an insurance checkup. Consider updating your insurance if the market has adjusted the value of your home and other vital assets.
Your future insurance needs will also change. Knowing your insurance needs now and in the future will help you prepare for conversations with your insurance advisor and the people who matter in your life.
When To Have an Insurance Checkup
Every year, you should check on your insurance. Consider scheduling appointments during your birthday month or the open-enrollment period at your workplace. Even if nothing has changed, evaluating your insurance can help you save money or determine if it’s time to update your accounts.
Life Stages
As you move through your stages of life, your insurance needs change. For example, when your children are young, you’ll need family health insurance coverage. After your children become adults and start their careers, they will no longer need to be on your health insurance policies.
Your homeowner’s policy needs will change based on the items in your home and the value of your home. Your insurance agents can help you make the best decisions for your stage of life. Your life insurance needs will change as you age, especially if you have fewer people who need your financial help.
Life Insurance
Life insurance provides financial assistance for people who rely on their income to pay for necessities. When you die, your life insurance pays a death benefit that helps pay for funeral expenses and future living expenses.
It’s time to adjust your life insurance if you’ve had changes in your life, especially if you are retired, or you have fewer people who are depending on your income. On the flip side, if you’ve gotten married, had children, or have more dependents – like an adult in your care, you’ll want to add to your policy.
Another reason to adjust your policy is if you’ve paid off your mortgage, as your loved ones will not have to cover that expense if you die. Once your children have graduated from college and found careers, you can also reduce your life insurance policy. Many people change their life insurance policies if they are widowed, as their spouses no longer need financial protection.
Health Insurance
Health insurance helps you pay for medical expenses. Because medical expenses are so high, everyone should have coverage, which is usually provided through an employer, the state, or the federal government.
During open enrollment periods, take the time to evaluate your coverage needs and to decide if you need to make changes. The usual reasons for change include losing coverage because of your age, employment changes, or family changes. You might need to increase your coverage if you’ve had a baby or gotten married.
Your insurance needs could change because of your financial situation. For example, you might make too much money so you no longer qualify for subsidies under the Affordable Care Act. Pay attention to auto-renewals and that you make changes before your coverage starts over and it’s too late.
Supplemental Health Insurance
Sometimes, regular health insurance isn’t enough to cover catastrophes. When you meet with your insurance agent, evaluate your health insurance and the cost of the care you think you need. Supplemental health insurance picks up where your coverage stops.
For example, if your health insurance pays a small percentage of a hospital stay, a supplemental plan could pay the rest.
Rather than leaving you with thousands of dollars to pay out of pocket, the supplemental plan could reduce your expenses to hundreds. You can purchase supplemental coverage for individual needs, like cancer insurance or prenatal care.
Supplemental Disability Insurance
Employers often include disability income insurance to cover disabling accidents that occur at work. The coverage usually pays for around half of your pre-disability salary and often includes a cap on benefits.
Rather than leaving everything to chance and minimal benefits, you can protect yourself and your family with supplemental disability insurance. Supplemental disability benefits cover a larger percentage of your income if you can no longer work because of a debilitating accident.
Supplemental disability insurance can be customized to fit your income while providing added benefits. You can keep the policy no matter where you work, and you don’t need a medical exam to get coverage. With regular payments, your policy doesn’t change.
Talk to Your Agent
Your insurance checkup should include a conversation about your deductibles and other expenses. Your agent can provide a detailed review of your coverage and the monthly costs clearly explained.
During your discussion, consider worse-case scenarios because that is the purpose of having insurance. If your coverage isn’t adequate, you’ll need to update your policies.
Related: Checklist: Is Downsizing or ‘Rightsizing’ Right for You?
