Buying insurance is important as it ensures that you are financially secure to face any type of problem in life. If you’ve taken the first step to put insurance cover in place, great job!
But have you spent time reviewing your policies and ensuring it still meets your needs since purchasing it?
So much can happen in 12 short months, that’s why it’s important to make sure your policy is right for you and your family now, and into the future.
Here are some significant reasons why:
- To ensure coverage sufficiency
As your life evolves and changes, so do your needs when it comes to insurance coverage. This means that what was appropriate for your needs, priorities and comfort zone last year, may no longer suffice this year.
An annual review of your policies also helps you stay up-to-date with what your coverages protect and where you may have gaps you’d like to fill with supplemental coverage or additional policies.
- Lifestyle Changes
A lot can happen in a year that can have huge effects on your insurance costs, coverage options, limitations, and more. Some of these things include:
- Welcomed any new members to the family
- Changed jobs or got a promotion
- Paid off large debts
- Taken on any new debts
- Has your health improved – or have you stopped smoking, and many more
Each of these things can trigger substantial changes in your coverage needs and your annual premiums.
- To align one’s financial goals
Certain life phases such as children’s education, marriage, buying an asset, planning for retirement, looking for post-retirement travel plans, etc. may call for a review of your insurance plan.
It becomes imperative to understand which plan would suit you best as per your goals.
The bottom line is, people usually consider buying insurance as the ultimate goal. However, reviewing the plan on a timely basis is necessary as it helps to understand if the purchased plan still works for them or not. As life unfolds, circumstances may change. Because of that, so should your insurance.
Reach out to your financial adviser to make sure your policy does exactly that. In addition to well-crafted life insurance, you’ll also have the peace of mind that comes with the knowledge that your loved ones are covered when they’ll need that coverage most.
You don’t have to go at it alone
Not sure how to get started? Talk to your financial adviser now.