Hello there, I’m the Life Guy from LifeGuy.com, and today I want to talk to you about something that’s often overlooked but extremely important: reviewing your insurance policy. With Daylight Savings Time happening today, it’s the perfect time to start the habit of making sure that your life insurance beneficiaries are up to date and that your coverage amount is still appropriate for your needs. After turning your clocks ahead and replacing your smoke detector batteries, take out your life insurance policy for a quick review.
Why is reviewing your insurance policy important?
First and foremost, reviewing your insurance policy ensures that your loved ones will be taken care of in the event of your passing. Making sure that your beneficiaries are up to date is crucial to ensuring that your policy benefits are paid out to the correct people. Imagine if something were to happen to you and your ex-spouse was still listed as the beneficiary on your policy. That could create a lot of unnecessary stress and confusion during an already difficult time.
In addition to reviewing your beneficiaries, it’s important to make sure you have the right amount of coverage for your current needs. If you’ve had major life changes such as buying a home or having a child, you may need to increase your coverage to make sure your family is protected.
How to review your insurance policy
Reviewing your insurance policy doesn’t have to take long. Here are a few things you should look for:
- Beneficiary designations – Make sure the person you want to receive your insurance proceeds is up to date. You might also consider naming a secondary, or contingent beneficiary in case your primary beneficiary passes away before you do.
- Coverage amounts – Is your coverage amount still sufficient for your needs? Have any major life changes since you purchased your policy? Use our handy life insurance calculator if you’re not sure you have the right amount.
- Policy terms – It doesn’t hurt to review the policy terms, such as waiting periods and exclusions, to make sure you understand them and they fit your current lifestyle.
- Premiums – Make sure you are paying the correct amount on your premiums. Consider setting up an automatic bank draft so it is one less thing to think about and your policy won’t accidentally lapse due to non-payment.
When to review your insurance policy
It’s a good idea to review your life insurance policy annually but there are some other times you should take a closer look as well:
- When you experience a major life change – As mentioned earlier, major life changes like getting married, having a child, or purchasing a new home should prompt you to review your insurance policy.
- When your policy is up for renewal – Take the time to review your policy when it’s up for renewal to make sure that everything is still appropriate for your needs.
- When there are changes in tax laws – Tax laws can have a big impact on your insurance policy, so it’s a good idea to review your policy whenever there are changes in tax laws.
- When you’re approaching retirement – As you approach retirement, your insurance needs may change. Reviewing your policy can help ensure that you’re prepared for retirement.
Summary
Reviewing your insurance policy may not be the most exciting thing on your Spring cleaning list, but it’s an important task that shouldn’t be overlooked. Spending just a few minutes to look over your policy can keep your loved ones safe and make sure you have enough coverage. Take a quick look at your life insurance policy now and contact me if I can help you with any increased coverage needs.
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