When is it time to review your insurance cover? If you’re reading this, the chances are that you have already got one or more insurance policies in place to assist you in times of need. You may have set up your insurance several years ago and happily pay your monthly premiums without giving it too much consideration.
It’s really important that you take a detailed look at your level of coverage at least once a year to ensure that you are fully covered and that your policies are right for you.
During a review you need to look at all of the insurance policies that you have. You should review the premium costs as well as the level and type of cover each policy offers. It can help to have an insurance specialist look through your policies as they will be able to work out what you need and whether what the cover you have is too little, too much or just right!
If you “set and forget” insurance policies, you run the risk of discrepancies occurring over time. In simple terms this means in life insurance, for example, you may require a pay out of the policy and find the sum doesn’t cover your needs. It can also go the other way, with you continuing to pay premiums for a larger ‘payout’ sum than is required.
When should I review my insurance?
It is really important that you review your insurance coverage at least once a year. It can often work out that you review your coverage when your policies are up for their annual renewal.
It is also important to review your coverage if you have a major change in circumstances. Examples of changes that should prompt an insurance coverage review are:
Changes in your living situation
Buying a home is the big one here, you should be setting up various insurances related to this. You should also review your insurance if you increase your mortgage, renovate your home or sell your home.
Professional changes
You might get a new job with a bigger salary – this could mean your family relies on you more financially and could affect your coverage needs. Retirement is another big milestone, your insurance requirements may change when you no longer have a salary coming in.
Family Changes
Events such as having or adopting a child, getting married or divorced or losing a family member can affect your insurance requirements.
Lifestyle Changes
You may stop smoking, or take up a new adrenalin charged hobby – these can both have an impact on your insurance policies.
When you review your insurance coverage it doesn’t necessarily mean you’ll need to change your cover amount or type, but it pays to get into the habit of checking yearly so that you keep your insurance up to date.
Lifestyle Solutions offer a complimentary insurance review service. To begin, click the button below to fill out a short form. Someone will be in touch with you to discuss your specific needs and to provide you with a comprehensive and tailored coverage review.
