When most people buy an insurance policy, they rarely think about the policy until the time it is needed. This is wrong and should be avoided at all costs. As time goes on, things change. You might buy a home, change jobs, get children, or get married.
When such things happen, you also need to review your insurance coverage. This ensures that you are not paying more and are not underinsured.
That being said, how often should you review your insurance coverage? What are some things you need to consider when reviewing your coverage? Here is a simple guide for you to follow:
Getting Married
Some insurance policies you need to review when you get married include:
Renter’s or Homeowner’s Insurance
Getting married means that you start living with your spouse. They move in with all their possessions. This means that you will have more items under your roof. You will need to review your renter’s or homeowner’s insurance to get more coverage. You can take an inventory of everything that you have to ensure that everything is covered.
Car Insurance
Did you know that you stand a chance to save money on your car insurance after getting married? The secret lies behind combining your policy with your spouse. You can look at USAA’s competitive quotes for car insurance and get a policy that meets both your requirements and those of your spouse.
Life Insurance
Most people never want to imagine life without their partners, especially after they get married. However, anything can happen and your wife or husband should not be left without support. You should, therefore, review your insurance coverage immediately after you get married to add your partner.
Health Insurance
Just like with car insurance, you can combine your health coverage with your partner. This is a way of saving money on insurance. When reviewing your health insurance, ensure that you have looked at different options and talked to an expert to choose a coverage that best suits your requirements.
Changing Family Size
Life Insurance
Getting children is a huge milestone for every parent. Once you achieve this milestone, you need to review your life insurance immediately to ensure that all additions to your family are included as beneficiaries.
Car Insurance
You got married and reviewed your car insurance. After getting married, you got new additions to your family. Now that your children are grown-ups and they can drive, you need to review your car insurance and find out if they can be added as drivers. This can save you money instead of having them get their own car insurance.
Health Insurance
Again, you need to review your health insurance when getting babies. You should not even wait until the time you are giving birth. Instead, review the coverage immediately after you get pregnant.
New Homeowners
Homeowner’s Insurance
If you are a new homeowner, you have no option but to get homeowner’s insurance. Imagine the loss you would go through if you lost your home to natural disasters such as tornados or fires. This insurance coverage ensures that you have enough money to rebuild or repair your home.
Auto Insurance
Some insurance companies allow homeowners to combine their homeowner’s insurance with car or auto insurance. This saves you a lot of money. After buying a new home, review your car insurance to see if you can add homeowner’s insurance.
New Job
Life Insurance
If you are lucky to get a new job that pays more than your previous job, you might also need to review your life insurance coverage. This also applies to those who start a new business. However, it is important to note that risky jobs might make your life insurance expensive.
Car Insurance
Adding car insurance to this list does not mean that you have to tell your insurance company every time you change jobs. However, if you find yourself in a situation where you have changed careers, it might be necessary. Some careers qualify customers for discounts on their car insurance.
Other insurance coverages you need to review include;
Life insurance when you get a rise in your salary.
Car insurance when you buy a new vehicle.
Umbrella, renter’s, and homeowner’s insurance when you buy an expensive possession (apart from cars or houses).
Life and car insurance when you are retiring.
Homeowner’s insurance after renovating your home.
However, this does not mean that you should never review your insurance coverage when you do not have any of these events in your life. As good practice, always review your insurance policies every year.
