As our lives change and grow with varying circumstances and new additions, such as children or debt, our needs for insurance will also evolve.  Love (i.e., dependents) and obligations (i.e., loans) will influence your insurance requirements and should be frequently re-evaluated to ensure that you are making the most appropriate and financially favorable decisions.  Perhaps you are not aware if you should conduct an insurance audit or not.  The following scenarios are usually a good indication that you should thoroughly assess and review your current policy contract:

  • Bringing new life into your family?  A new baby may not only prompt you to adjust your beneficiary information, but it is likely to change or influence your coverage needs.
  • Changing jobs?  Probationary periods may not provide the same level of disability or accident insurance coverage.
  • Is your term life insurance policy nearing the end of its term?  Be sure to compare prices for new policies, as they can sometimes be more affordable than renewing the current plan.
  • Has your marital status changed?  The beneficiaries on your insurance policy will likely need to be updated.

The specific type of insurance policy you have, as well as personal health or lifestyle changes, can influence coverage and premium prices.  If any of the following factors apply to you, be sure to update your policy as you might be eligible for a rate reduction.

  • Changes to your overall risk assessment; for example, smoking cessation, dangerous hobbies, having a high-risk profession, etc.
  • If you have experienced improvements from a previously diagnosed health condition.
  • Do your policy’s investment options still fall in line with current market conditions?
  • Have you used your insurance policy as collateral for a loan? Once that loan is paid off, the collateral status should be removed from the policy.

Insurance policies that are generated for business purposes should be reviewed regularly to ensure the policy still offers adequate coverage to meet the needs of the company and includes appropriate beneficiary information.  With a full life schedule, it can be easy to forget about keeping insurance policies up to date.  However, major changes in your business, such as increased growth and new partners, can have a profound impact on your coverage needs and premiums.  Be sure to conduct insurance audits regularly to ensure your policies are still meeting your needs.

Contact us to see how we can help.