- Date 26 Jun 2017
- Category Insurance Knowledge Base
For Your Knowledge
Consumers of insurance are often unaware that their insurance needs are constantly changing. While there may be numerous circumstances and events that may lead to this. It is only logical to conclude that you should reevaluate your insurance coverage as years roll by. As a rule of thumb, you should revisit your insurance portfolio annually to keep up with ever-changing predicament and dynamism of life.
There are many reasons why you should revisit your insurance portfolio from time to time. Here is a checklist of what you should look for when reviewing your insurance portfolio:
• You just moved into a new home, condo, or apartment
• You bought a new car or additional one
• You just got married, divorced, birth or adopt a child
• Some relatives moved in with you
• You or your spouse changed job or one of you lost his/her job.
• You become self-employed or start your own business
This is not an exhaustive list and there are lots more but anytime there is a change in your family or lifestyle it can impact your insurance needs tremendously. It is known fact that financial commitment increases with time or when a new member joins your family.
You may need to adjust your insurance policies to fit your current circumstances, for instance, if you are single with no children your insurance need will not be much. Couples with kids should consider some form of permanent insurance which is useful for providing a death benefit to survivors but this type of insurance is expensive and not every couple need this type of coverage.
It doesn’t matter what your circumstances are you need to rethink your insurance needs. Your current coverage may not be sufficient to cover your insurance needs in a year or two. As every year presents its own challenges, you must adjust your coverage accordingly. To better prepare for all these, at the beginning of each policy year, it is advisable that you reevaluate your insurance needs. You can also purchase a new policy to complement those already in your portfolio.
Eliminate what you don’t need anymore, for instance when your kids are grown and the mortgage is paid off, then your insurance policy may have outlived its purpose. So it’s either you let it lapse, cash it in or repurpose it for a new coverage.
All these factors and changes are the reasons why you should always review your policy at least once a year and making sure that you on a safe side. You don’t know what life may throw at you tomorrow, so you have to be prepared and get your insurance in other.
Why you should always consult your insurance broker
Your insurance broker is in the best position to advise you on a wide range of products available on the market. Once your broker assessed your individual needs he/she can find you the right coverage at a competitive price.
Assessing your insurance coverage frequently is one the smartest financial move you can make to help you eliminate the possibility of staying underinsured.