Avoiding Insurance Reviews Can Be Costly
The personal insurance plans you have may need to be adjusted annually if possible
. The life, health care, disability, auto and home owner's insurance that you possess may no longer do what you need them to do. Each plan should be reviewed and changed as necessary.
Your family's requirements for life insurance may have changed since the last time you reviewed it. You may have too much insurance in this area. You may have too little coverage. You may have the wrong type of insurance in this area.
If you are earning a better salary you may need to adjust the limits of the life insurance you own. One of the primary motivations for life insurance is to replace lost income. Having too little life insurance can mean that your spouse and children have too little income.
If you have more obligations now than when you purchased your plan you may want to update your contract. A new baby can increase your requirements for insurance. The reverse is also true. If your children are adults and son their own, you may need less insurance than you did previously.
Your need for health insurance may have changed. When is the last time you reviewed your medical insurance plan? Your health insurance contract may have a maternity rider that you no longer require. Or, it may not have coverage for maternity and you are planning to expand your family.
Your insurance deductible may be too low or too high. You can easily pay more than you should by buying a contract with a deductible that is too low.
The limits on your policy may be lower than you need. The cost of a hospital stay goes up each year. Medical providers charge more each year. Unless your contract has unlimited lifetime and annual limits it may fall short if you have a serious health problem.
Disability insurance gives you an income when you are unable to work due to illness or trauma. If your income has gone up, your disability insurance should also rise.
If your need for income has shrunk, you may want to reduce your insurance for disability. If you are able to live off of your investments now you may no longer require this coverage.
Your car insurance policy has probably been adjusted when you bought and sold automobiles. It may not have been changed to make sure that you have adequate liability limits. It may not have been updated as your autos have grown older and perhaps no longer need physical damage protection.
Your house insurance needs adjustment on a regular basis. The amount of coverage you have on your dwelling needs to equal the cost of rebuilding your home. (Not the cost of purchasing a similar home.) This amount changes as time passes and your contract should be adjusted.
If you have bought jewelry since you bought your house policy, you may want to make sure that you have enough protection. You may need to purchase a rider or a separate plan to cover your jewelry. The standard home owner's insurance plan will only cover a small amount of jewelry.
Checking rates with various companies to get the best price is an important part of an insurance review. Your needs change from year to year. So do the prices of the various insurance companies. Although it is more important to be sure that you have the right type and amount of policies, it is also important that you not pay too much for it.
The best way to make sure that your insurance policies are still adequate for your needs is to review your needs and your insurance contracts one by one. Having too much insurance means your coverage is more expensive than it should be. Not having enough coverage can also hurt you. It means that you your insurance can fail to pay you what all that you need.
by: Alston Balkcom
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