Typically, insurance policies need to be reviewed once every year. You can do this to save by taking advantage of discounts you qualify for or getting rid of add-ons that you no longer need. Reviewing your life insurance can also help you to determine if you’re getting the best rates. Most importantly, life changes and as such, your insurance needs change. A review ensures that you are not underinsured or paying for what you no longer need.
Are your beneficiaries covered?
We know that anything can happen anytime which is why life insurance in particular needs to be reviewed after a major life event such as a divorce, birth of a child or marriage. You always want to ensure that your beneficiaries are covered. Reviewing your insurance once every 12 months if you haven’t had any major life changes is recommended because you may still find that your policy is inadequate or needs a few changes.
You are likely to make changes in your life insurance policy over the years as your needs change. If you have certain plans or changes coming in a few years, you can plan better for them by taking up life insurance coverage that suits your needs.
Reviewing after major life events
Some life events require some planning, others can come up unexpectedly. All in all, we must embrace these life changes and make sure the policies we have in place cater to your needs. As soon as you experience a major life change, you may want to conduct a life insurance review immediately. Call your insurance agent or financial advisor to discuss your new requirements and whether you can make changes in your current policy to better suit your needs.
Some of these major life events that would require you to conduct a review as soon as possible include:
- Birth of a child/grandchild
- Admission of your child to college
- Caring for an ill relative
There are situations that will require you to use up a chunk of your savings such as when you send your child to college. Your life insurance can help to cater for such costs. Additionally, some changes in your life can result in an increased cash flow that allows you to make better financial decisions. For instance, if you run a business that is currently doing very well, you might want to review your life insurance and ensure you leave your beneficiaries just enough money or buy more coverage.
How to perform a life insurance review
Start by looking at the year that was and what responsibilities you have on your shoulders. Any additions to your family? A new child or parents moving in? In this case, you may want to increase your life insurance to ensure you accommodate the needs of all your dependents. Other factors such as changes in health should also drive you to increase your policy. Review and renew your life insurance every year to cater for those unforeseen circumstances in life.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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