A good rule of thumb is to review your insurance at least once a year. Now is a great time to review insurance before the hustle and bustle of the holiday season.
Benefits of Regularly Reviewing Your Insurance:
- Avoid Gaps in Coverage: Life is unpredictable, and failing to review your insurance regularly could leave you underinsured. For example, if you fail to update your life insurance after having children, your family might not be adequately protected.
- Potential Savings: If your risk factors have decreased—such as quitting smoking or installing security systems—you might qualify for lower premiums.
- Update Beneficiaries: Life changes such as marriage, divorce, or the birth of a child should always lead to an update of beneficiaries in your policies.
When is the Best Time to Review Your Insurance?
While annual reviews can occur at any point in the year, certain times might be more convenient or advantageous:
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- Before the Holiday Season
- You’re more likely to forget during the hustle and bustle of the holidays.
- Tax Season
- As you gather your financial information for tax preparation, it’s a natural time to take stock of your overall financial health, including your insurance policies.
- During Major Life Changes
- As mentioned earlier, any major life event, such as marriage, buying a home, or having a child, should prompt an immediate review of your policies.
- Before the Holiday Season
Here’s a List of Life Events or Milestones that should Prompt Immediate Review:
- Change in Employment
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- If you’ve changed jobs, lost your job, or started your own business, your insurance needs might shift. Employer-provided health or life insurance may no longer apply, so it’s essential to ensure you have the coverage you need.
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- Marriage or Divorce
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- These significant life changes affect all aspects of your finances, including your insurance. After getting married, you may want to combine policies or increase your coverage. After a divorce, updating beneficiaries and removing your ex-spouse from policies is essential.
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- Home Purchase or Rental
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- Whether you buy a new home or move into a rental, you’ll need to ensure your homeowners or renters insurance aligns with your new living situation.
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- Having a Child
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- Expanding your family means more responsibility. Reviewing your life and health insurance policies can ensure that your loved ones are protected should anything happen to you.
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- Major Purchases
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- Acquiring high-value assets like a new car, jewelry, or electronics should prompt a review of your auto or home insurance to ensure they’re adequately covered.
Reviewing your insurance policies isn’t something you should only do once. Whether it’s an annual review or triggered by a major life change, regularly assessing your coverage ensures you’re protected and potentially saves you money. By aligning your insurance with your current life stage and needs, you guarantee peace of mind, knowing you’re prepared for whatever comes your way.
At Raymond Nelson Insurance, we go the extra mile to find the coverage that best protects what matters most: the business you’ve built and the people you love. We always take the time to get to know each client and serve their best interests. Call us today at (270) 885-1800 or contact us online for more information.