The Benefits of Annual Insurance Policy Reviews
Many policyholders inadvertently take a stance of “set it and forget it” when it comes to insurance. That’s entirely understandable. Still, independent insurance agents recommend checking your policies’ terms, conditions, and language at least once a year. This helps to verify that your coverage levels still meet your needs.
Here are a few ways annual insurance reviews can improve your status.
Understanding Coverage
Many policyholders leave their insurance coverages intact with little to no changes, especially with life, disability, and title insurance. But solid independent insurance coverage isn’t stuck in time. Benefits and limitations that were adequate five or ten years ago may not be enough today.
In other cases, old insurance policies may not be necessary anymore. Taking a look every year to account for changes in benefits, exclusions, and limitations can help simplify your coverage and potentially save on premiums.
Life Changes
Marriage, childbirth, buying a home, starting a business, retirement, and other life changes can reframe your entire situation. They may also introduce new insurance needs.
A new home might have significantly different features or construction that must be addressed. Growing a family may result in the need to improve your life coverage. Reviewing your policy every year to make sure it reflects your stage in life can enhance your protection and instill peace of mind.
Overlaps and Gaps
Your insurance coverage may have gaps or insufficiencies that could leave you vulnerable in case of a claim. On the other hand, you might find multiple policies covering the same risk, making them redundant and needlessly expensive.
Eliminating these coverage lapses and duplicates can streamline your insurance portfolio, giving you the protection you need for less money. An annual review can expose these insurance shortfalls.
New Products and Discounts
Independent insurance agents always seek new ways to serve their clients better. As technology evolves, they may offer unique cyber protections for your home or business. Agencies may offer discounts for safe drivers or new bundling arrangements. When you review your coverage every year, you can take a closer look at some of the new products and strategies to determine whether they can upgrade your policy.
Adequate Liability Coverage
A liability lawsuit can undo your entire financial well-being. It’s essential to review your current liability coverage as it correlates to your net worth and future earnings. Checking up on exclusions, limits, conditions, and scope of coverage can be a crucial step in preserving your financial health.
Timing Renewal
Lastly, most insurance policies across all areas are built with one-year terms. An impending renewal date is a good justification for reaffirming that your coverage needs are still being met.
An Annual Review Can Provide Protection
You can never be too informed about your insurance coverage. Scheduling an annual review can help maintain adequate coverage and uncover areas where you can save money. You can do so in consultation with your independent insurance agency to make sure your plan is still solid. Just a few minutes of reading today can extend your protection well into the future.