If you’re an insurance policyholder, it’s important you set aside time to do an annual review of your policy. You’ll want to review your policy to make sure you’re still receiving the best coverage possible.
Assessing Your Current Policy
You might be wondering where to start when it comes to assessing your current policy. One major question you’ll want to ask yourself is whether you’ve had any major life changes that could require getting more or less coverage. Examples of major life changes could include the following:
- Marriage or divorce1
- A baby was born or adopted3
- Switched jobs or had a major change in income1
- ignificant changes in your health or that of your spouse/domestic partner2
- Took on the financial responsibility of an aging parent2
- Helped a loved one who requires long-term care2
- Took on a new debt4
- A death in the family occurred3
Once you’ve considered any major life changes, you’ll also want to determine whether the premiums or benefits have changed since your policy was issued, and whether the death benefits still fit your needs. If anything has changed, you may need to adjust your policy accordingly.
If you’ve decided to make changes, contact your insurance company for more guidance on how to go about doing so. You’ll need to confirm your beneficiary designations and make sure their contact information is correct.
Finally, it’s important to make sure your loved ones are aware of your life insurance policy or annuity contract, will, health directives, and any end-of-life decisions you may have. It might be a difficult discussion to have, but it could be easier to do when it’s part of your annual insurance review.
Making Changes to Your Current Policy
If you decide to make any changes to your current policy, you’ll typically have a few options to consider. You might have the option to add or remove policies, buy additional coverage, and change beneficiaries.3
It’s important to be aware of your rights as a policy owner. Therefore, for any additional questions it’s important to contact your insurance company or a local licensed insurance agent for more information before purchasing a new policy or updating your current one.
iii.org, How Often Should I Review My Policy?, 2020
naic.org, Life Insurance Buyer’s Guide, 2018
tdi.texas.gov, Your Annual Insurance Review, 2020
Categories: Insurance, Life Insurance, Supplement Health Insurance