Is your insurance meeting your needs? Here are 10 life events that often result in needing to update your policy.
1. Getting Married
Have you gotten married recently? First, congratulations. Second, lets update your policies. We have a whole blog on this topic for reference:
2. Getting Divorced
Similarly to when you get married, divorce also comes with its own set of insurance updating and getting individual policies.
3. Having a Child
If you recently had a baby or added to your family, this is a reason to update your policies to include coverage for your new addition. It is also important to review all of your coverage amounts with an agent to be sure that your plan is aligned with any new goals that you have.
For example, a high deductible might sound fine when you are single, but the addition of a child to your family has increased your risk and made it harder to have a higher amount of out of pocket costs.
This is the time to look into life and disability income protection coverage and your homeowner’s policy to be sure that it would be ample to provide for your family should the unthinkable happen.
If you are planning for your life insurance to match your survivors’ expenses after your death, the new child will no doubt add to those expenses, requiring more life insurance to keep your family secure. If you plan to save for your child’s college education, life insurance can assure completion of that plan. And if you keep your current life insurance policy, don’t forget to update the beneficiary designations to include the new child.
4. Having a Teen Driver
Is your teen hitting the road? Be
sure that they are driving with the right insurance. As a parent, it is generally cheaper to add your teenagers to your auto insurance policy than for them to purchase their own. Choose the car carefully—the type of car can dramatically affect the price of insurance, especially in young drivers. You and your teens should choose a car that is simple, easy to drive, and possesses top safety features.
Often, policies may offer a good grades discount for a “B” Average or above in school, so be sure to take advantage of that if available. Selecting a deductible amount that would be easily available in the event of a claim is also great planning as a family, especially if your teen may be paying for the deductible or some of the policy. This can be a great educational moment for your teen, so be sure to reach out to MCIA if you have any questions.
Here are some additional tips for teen drivers:
5. Career changes
Have you recently changed jobs, left your career, or started a new path? Be sure to look into how your coverage changes as a result.
If you had life and disability insurance through your former employer, and your new employer does not provide equivalent protection, you can replace the “lost” coverage with individual policies. If your new job came with an income increase, you may have taken on additional financial commitments that your survivors will depend on. Make sure to review your life and disability insurance to ensure it is adequate to maintain those costs. If your income has decreased in your new position, you may want to cut your life insurance premiums. Term life insurance can be a good option, as the premium rates are very reasonable. If you already have two or more policies you might be able to replace both with a single policy at a lower rate.
6. Doing home renovations
If you have made any changes or improvements to the interior or exterior of your home, you may risk being under insured if you don’t report the changes to your insurance company. An increase in the value of the structure of the home may require an increase to your homeowners insurance coverage limits.
Be sure not to overlook new structures outside of your home. If you built a gazebo, a new shed for your tools or installed a pool or hot tub, you should speak to your insurance professional.
7. Buying a second home
Like when you have a primary residence, buying a second home also means adjusting your homeowners insurance policy.
If the home that you purchase is going to be a vacation home or a retirement planning purchase, researching the home insurance availability before buying is a wise idea. Some factors that make these types of properties ideal are waterfront or mountain views, which climates come with their own risks. If the property is close to water, be sure to look into flood insurance, as homeowners policies only cover certain types of water damage.
8. Signing a new lease
Did you just sign on as a renter in a new place? Be sure to get renters insurance. We have a whole blog on this topic –
9. Acquiring new valuables
When you acquire new expensive belongings, be sure to add the value of those items to your homeowners policy and home inventory. If the items are of high value, such as jewelry or fine art, taking out a separate policy might be the best option for getting the coverage you need. Contact MCIA to talk to an expert about the best options for insuring your new items.
10. Retiring
Retiring can be a huge life shift, which requires reviewing your insurance policies. As you leave your job, much of the insurance that they may have provided you doesn’t come with you, so looking for individual policies for dental, vision, disability, or life insurance might be your next step. You may have the option to convert your provided insurance into individual policies.
If you are of age, looking into Medicare and Medicare supplement options for your health insurance is also important. Here at MCIA, we can help you navigate this transition.
Auto Insurance is another area that may change upon retiring if you commuted regularly. Your mileage and use of your vehicle has likely plummeted. Reporting this to your auto insurer may significantly reduce the cost of your premiums.
